Fashion
In a regulatory filing with the SEC, UBS said it expects to wrap up its agreement with the Swiss government over loss guarantees as part of its government-orchestrated takeover of Credit Suisse.
When UBS agreed to take over troubled Credit Suisse at the behest of the Swiss government, part of the deal was for the federal government to absorb up to nine billion Swiss francs ($9-9 billion) of losses related to Credit Suisse after UBS shouldered the first five billion.
That agreement, which is one of the final pieces of the puzzle that needs to be completed for the takeover, is expected to be finalized tomorrow.
UBS Group AG expects that the Loss Protection Agreement will be finalized by June 7, according to a filing with the US Securities and Exchange Commission (SEC), which will allow it to proceed with the takeover.
UBS said it expects to complete its formal acquisition of Credit Suisse as soon as June 12, subject to the registration statement being declared effective by the Securities and Exchange Commission (SEC) and to the satisfaction, or waiver by UBS of remaining closing conditions. The shares will then be delisted on the SIX Swiss and New York Stock exchanges.
A great deal of complexity surrounds the completion of the deal. So much so that UBS is said to be considering delaying its interim results, according to additional reporting by finews.com.
Losses over 14 billion francs which were not included in the Special Ordinance making the merger possible, «requires a separate legal basis in the form of a parliamentary approval in the ordinary legislative procedure as well as the commitment credit,» the SEC filing said.
