Exclusive: UBS seeks about $6 billion in government guarantees for Credit Suisse deal

18 March (Reuters) – UBS Group (UBSG.S) is seeking about $6 billion in government guarantees for a possible takeover of Credit Suisse Group (CSGN.S).

The figures are subject to change as negotiations are still ongoing and some scenarios are still being considered, the person said.

The guarantee will cover the costs of winding down parts of Credit Suisse and potential litigation costs, the sources said. Another confirmed this without specifying the $6 billion figure.

Talks to resolve the crisis of confidence in Credit Suisse face serious obstacles and could have to cut 10,000 jobs if the two banks were merged, the first said. sources said.

Swiss regulators race to present a solution for Credit Suisse before markets reopen on Monday, but the complexity of combining the two giants makes it more likely that negotiations will continue until Sunday. Yes. Credit Suisse, UBS and the Swiss government declined to comment.

Credit Suisse was valued at about $8 billion at the close of trading on Friday.

Deutsche Bank is also interested in buying part of Credit Suisse, the first sources said. But a deal with a German lender could take even longer, sources said.

A spokeswoman for Deutsche Bank declined to comment.

Bloomberg previously reported that a German lender was interested in a piece of Credit Suisse.

KBW analyst Thomas Hallett said in a note to clients on Saturday: “Any potential deal is complex and scattered, with one litigation protection, the situation remains fluid, but by Monday there will be clarity. need to be done,” he said.

Additional reporting by John Revill Editing by Elisa Martinuzzi, Paritosh Bansal and Peter Graff

Our Standards: Thomson Reuters Trust Principles.