UBS Group Chairman Colm Kelleher said:He said the Credit Suisse Group merger would take three to four years, not including the closure of the investment bank.
In a speech prepared for UBS’s annual shareholder meeting on Wednesday, Kelleher said there were “enormous risks in integrating these businesses,” even with the underpinnings in the form of government support.
Last month, UBS agreed to buy Credit Suisse, weakened by years of scandals, losses and risk mismanagement, for 3 billion Swiss francs ($4.3 billion). A government-brokered emergency bailout has been put together to end the Credit Suisse confidence crisis that was beginning to spill over into global financial markets.
“Credit Suisse will no longer be an independent company,” said Kelleher, adding that the bank is “a symbol of the Swiss economy, a bank that has played a key role in the country’s economic development, and a globally respected player.” was,” he said.
Credit Suisse shareholders will receive one UBS share for every 22.48 Credit Suisse shares they own.
In a separate presentation, UBS Vice Chairman Lucas Gerwiller said there would remain “great uncertainty” until the deal was completed. The best-case scenario is for the deal to close within weeks, but it will likely take months, he said. He also said that the Credit Suisse brand will remain in Switzerland for the foreseeable future.
UBS will consider all options for Credit Suisse’s domestic business, but warned that it “must keep realistic expectations” about the business’ independence.
Kelleher admitted that UBS shareholders did not have the opportunity to vote on the Credit Suisse deal, explaining that he “didn’t have time” to consult with them because he was desperate to put together an emergency bailout.
“We understand that not all the stakeholders involved in UBS and Credit Suisse are satisfied with this approach,” he said. I thought it was the best possible option,” he said.
UBS Chairman’s Top Secret Preparations For Credit Stake – Successful Success
news-rsf-original-reference paywall">Original title:UBS Chair Says Credit Suisse Integration Will Take up to 4 Years(excerpt)
