A person with knowledge of the discussions told Reuters on Saturday that the UBS Group AG is looking for government guarantees of $6 billion for a possible takeover of Credit Suisse Group AG.
The figure could change as several scenarios are still under review, the person said.
The source said that the guarantees would cover the cost of winding down parts of Credit Suisse and potential litigation charges. A second person confirmed this without specifying the $6 billion figure.
The talks to resolve the crisis of confidence in Credit Suisse are facing significant obstacles and 10,000 jobs may have to be cut if the two banks are combined, the first source said.
Swiss regulators are trying to present a solution for Credit Suisse before markets reopen on Monday, but the complexities of combining two behemoths raises the possibility that talks will last well into Sunday, said the person who asked to remain anonymous because of the sensitivity of the situation. Credit Suisse, UBS and the Swiss government didn't want to say anything.
Credit Suisse was valued at the equivalent of $8 billion at the close on Friday.
Deutsche Bank AG is interested in acquiring parts of Credit Suisse, according to the first source. The German lender could take a longer time to reach an agreement, the source said.
The German lender is interested in parts of Credit Suisse, according to Bloomberg.
Any potential deal will be littered with complexity, litigation protections being one, with the situation to remain fluid but with clarity necessary before Monday, Thomas Hallett, a KBW analyst said in a note to clients on Saturday.