Foreign banks have expressed UBS merger interest, Swiss newspaper reports

Swiss newspaper Blick reported on Sunday that several major foreign banks have shown interest in a potential merger or combination with Switzerland's UBS. An insider with knowledge of the matter told Blick that at least eight banks have signaled their interest. UBS, which declined to comment, faced a setback when Switzerland's upper house voted in favor of stricter capital rules.

The bank estimates that these new regulations could require it to hold around $18 billion in additional capital. Prior to the vote, UBS chairman Colm Kelleher had warned that the bank might reconsider its Swiss base if the capital rules proved too stringent. Just a day earlier, Semafor had reported that UBS executives had restarted talks on reducing the company's exposure to Swiss regulation, potentially through a merger with a foreign bank, based on statements made by individuals familiar with the situation.

Finance Minister Karin Keller-Sutter stated on the weekend that it was unlikely UBS would abandon its Swiss operations, as the new capital requirements would be more costly and legally complex than remaining in Switzerland.