Embattled UBS poised for merger with SBC
Saturday 06 December 1997
Employees of Union Bank of Switzerland (UBS) have been summoned to weekend meetings to hear details of their fate, according to banking sources. UBS is expected to announce a merger with rival Swiss Bank Corporation (SBC), a move which would lead to a jobs "bloodbath" in both the City and elsewhere. A full-scale merger of the two banks would create one of the largest banks in the world, with assets of more than pounds 350bn.
"UBS has been in paralysis for six months because there's been a feeling that a major announcement is on its way. The bank's lost several key staff in the process," said one insider yesterday.
Discussions between the two banks are thought to have begun some months ago, following UBS's snub to Switzerland's third banking giant, Credit Suisse First Boston (CSFB), last year. In April 1996, UBS rejected overtures from CSFB, which recently took control of parts of BZW, Barclays' investment banking arm.
Sources close to UBS say the beleaguered bank could hive off some of its banking activities and merge the remainder with SBC. JP Morgan, the US investment bank, has been named as a likely bidder for the Swiss bank's sizeable equities business. And speculation has also focused on Deutsche Bank, the German banking giant, as a possible purchaser of UBS's Swiss client portfolio.
Shares in both UBS, whose board met yesterday, and SBC, were sharply higher in Zurich trading yesterday.
The Swiss market is heavily over-banked, and all three Swiss banking giants posted heavy losses last year. Merger speculation has been heightened in recent weeks following comments from a major UBS shareholder, Swiss investor Martin Ebner. Mr Ebner recently suggested that it would make sense for two of the Swiss banks to merge and then hive off some business or join forces with a foreign partner.
"UBS is no longer master of its own destiny. If it tries to stay on its own, it's already too late for it to succeed," commented one source last night.
Oscar Pistorius trial: Paralympian sick again after photographs of Reeva Steenkamp's body are shown in court
Missing Malaysia Airlines Flight MH370: US pushes search towards vast expanse of the Indian Ocean
Seth Rogen compiles list of all the celebrities he’s got high with
Oscar Pistorius trial: Photographs of Paralympian splattered in blood shown in court
Missing Malaysia Airlines Flight MH370: Focus shifts west as Indian Ocean becomes latest search area for the aircraft and its passengers
Katie Hopkins continues campaign to become Britain's most hated talking head with poorly timed Bob Crow tweet
No EU referendum under Labour: Ed Miliband to reveal that vote on membership is ‘unlikely’ in next Parliament if party wins power
Grace Dent: Who cares if she spells it Barraco Barner? Gemma Worrall is more employable than some bookish arts graduate
Europeans have ‘got whiter’ due to natural selection in past 5,000 years, scientists say
Fracking is turning the US into a bigger oil producer than Saudi Arabia
The rise of Ukip: Study warns Labour that Eurosceptic party's electoral base now 'more working class than any of the main parties'
- 1 Is your name now 'banned' in Saudi Arabia?
- 2 Tony Benn meets Ali G: Watch Labour veteran burn Sacha Baron Cohen
- 3 Women do experience two different types of orgasm, study reveals
- 4 Istanbul protesters take 'Ellen selfie' from the back of a police van
- 5 Lady Gaga has struggled with eating disorders in the past, so it's indefensible that she's glamourising bulimia in her SXSW set
iJobs Money & Business
£35000 - £43000 per annum + Bonus and Benefits: Harrington Starr: A global lea...
£50000 - £60000 per annum: Harrington Starr: Linux Systems Administrator - UNI...
£32000 - £36000 per annum + generous benefits: Pro-Recruitment Group: * TAX * ...
£37000 - £40000 per annum + £20000 benefits package: Pro-Recruitment Group: **...