Swiss newspaper Blick reported on the 27th that several major foreign banks have shown interest in a merger or partnership with Swiss financial giant UBS. Citing people familiar with the matter, Blick said at least eight banks have expressed interest in UBS. UBS said it does not comment on speculation. The bank was hit on the 23rd when the Swiss Senate passed a proposal to tighten capital rules, and according to the bank's own estimates, the regulations would require it to hold about 18 billion dollars in additional capital. Before the vote, Chairman Colm Kelleher warned that UBS might review its Swiss base if the capital rules were excessively strict. U.S. online media outlet Semafor reported on the 25th, citing sources, that UBS management has resumed discussions on ways to reduce the scope of Swiss regulation's application, including through a merger with a foreign bank. Finance Minister Karin Keller-Sutter said over the weekend that UBS is unlikely to leave its Swiss base, citing the higher costs and legal complexity of doing so compared with complying with the new capital rules.
UBS Group AGSwiss Senate passed a proposal to tighten capital rules requiring UBS to hold ~$18B more capital, prompting it to explore a foreign merger to reduce Swiss regulatory scope.
