Foreign banks have expressed UBS merger interest: Swiss newspaper

At least eight foreign banks have shown interest in a potential merger or combination with Switzerland's UBS, according to a Swiss newspaper report published on Sunday, September 27. The news outlet, Blick, based its information on an anonymous insider familiar with the matter. UBS, however, declined to comment on the speculation.

The Swiss upper house recently passed a vote in favor of more stringent capital rules, which UBS estimates could necessitate the bank holding an additional US$18 billion in capital. In response to the vote, the bank's chairman, Colm Kelleher, expressed concern that UBS might reconsider its Swiss operations if the capital rules proved too stringent.

Earlier in the week, Semafor published a report stating that UBS management had resumed discussions on potential strategies to lessen the bank's reliance on Swiss regulations, such as a possible merger with a foreign bank. The sources familiar with the matter shared these insights with the publication.

Switzerland's Finance Minister, Karin Keller-Sutter, dismissed the idea of UBS relocating its operations to a foreign country, stating that it would be more costly than the new capital rules and legally complicated.