Foreign Banks Express Interest in Possible UBS Merger Amid New Swiss Rules
UBS Faces Merger Interest and Regulatory Pressure
Foreign Banks Signal Interest in UBS Merger
ZURICH, Sept 27 (Reuters) - Several major foreign banks have expressed their interest in a possible merger or combination with Switzerland's UBS, a Swiss newspaper said on Sunday.
At least eight banks have signalled interest to UBS, Blick reported, citing an insider with knowledge of the matter.
Impact of New Swiss Capital Rules
Stricter Capital Requirements for UBS
UBS, which was not immediately available for comment, was dealt a blow when Switzerland's upper house voted on Wednesday in favour of tougher capital rules that the bank estimates could require it to hold about $18 billion in additional capital.
UBS Chairman's Warning
Ahead of the vote, chairman Colm Kelleher warned that UBS could rethink its Swiss base if capital rules were too harsh.
UBS Considers Options to Reduce Swiss Exposure
Management Discussions on Foreign Combination
On Friday, Semafor reported that UBS management had revived discussions on ways to reduce its exposure to Swiss regulation, including through a possible combination with a foreign bank, citing people familiar with the matter.
Swiss Government Response
Finance Minister's Perspective
Unlikelihood of UBS Leaving Switzerland
Switzerland's finance minister, Karin Keller-Sutter, said at the weekend it was unlikely that UBS would leave its Swiss base as it would be more expensive than the new capital rules and legally complicated.
(Reporting by Marleen Kaesebier in Zurich; Editing by Alexander Smith)