Foreign banks have expressed UBS merger interest, Swiss newspaper reports

Several major foreign banks have shown interest in a potential merger with Switzerland's UBS, according to a Swiss newspaper report on September 27. At least eight banks have reportedly signaled their interest to UBS, according to Blick, citing an insider with knowledge of the matter. UBS, which declined to comment on the speculation, faced a setback when Switzerland's upper house voted in favor of stricter capital rules on September 23.

The bank estimated that these new rules could require it to hold around US$18 billion (S$23 billion) in additional capital. UBS chairman Colm Kelleher had warned that the company might reconsider its Swiss base if the capital rules were deemed too stringent. Earlier on September 25, Semafor reported that UBS management had resumed discussions on ways to reduce exposure to Swiss regulation, including a possible combination with a foreign bank, based on information from people familiar with the matter.

Switzerland's Finance Minister Karin Keller-Sutter stated at the weekend that it was unlikely UBS would leave its Swiss base, as the costs of doing so would be higher than the new capital rules and legally complex.