UBS Attracts Interest from Foreign Banks for Potential Merger Amid Capital Rule Changes
Foreign Banks Eye UBS Merger as Swiss Capital Rules Tighten
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.
Expressions of Interest from International Banks
At least eight banks have signalled interest to UBS, Blick reported, citing an insider with knowledge of the matter.
UBS Response and Speculation
UBS, which said it does not comment on speculation on the subject, 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.
Potential Impact of Capital Rule Changes
Ahead of the vote, chairman Colm Kelleher warned that UBS could rethink its Swiss base if capital rules were too harsh.
UBS Management Considers Strategic Options
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's Position
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)
