Swiss government awards $9.7 mn Credit Suisse-UBS merger deal. On Monday, state procurement site Simap.ch announced that Alvarez & Marsal Switzerland won an advising mandate for up to 8.7 million Swiss francs ($9.70 million) to rescue Credit Suisse (CSGN.S).
Bern told UBS it would cover up to 9 billion francs of losses on Credit Suisse’s hard-to-value assets as part of the shotgun marriage between Switzerland’s two largest banks.
UBS covered losses of up to 5 billion francs.
“For the contractual implementation of the granting of the guarantee, the Confederation needs advice and support in the short term from an economic point of view,” Simap.ch writes. It claimed the loss guarantee must be prepared soon because the bank merger will be finalized quickly.
A Ministry of Finance official said Alvarez & Marsal would advise the government on UBS negotiations and asset liquidation.
Alvarez & Marsal verified it.
The Ministry of Finance also hired Niederer Kraft Frey (NKF) ten days ago to advise on guarantee contractual implementation. This service will cost the Ministry of Finance CHF 10.3 million.
