UBS Executives Say Surprise Credit Suisse Acquisition Is a 'Major Challenge'

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• When UBS AG UBS agreed to acquire Credit Suisse Group AG CS for $3.2 billion, the deal angered shareholders and many in Switzerland. 
• A survey by political research firm gfs.bern found that most Swiss did not support the deal that would create a financial institution with assets double the size of the country's annual economic output.
• Related: Hefty Credit Suisse Bailout Costs $13,500 Per Person In Switzerland.
• UBS executives told shareholders that its unexpected takeover of Credit Suisse was a milestone for the industry and a significant challenge for the bank, Reuters reported.
• Describing the transaction as "the first merger of two globally systematically important banks," Chairman Colm Kelleher sought to assure investors that it also meant "a new beginning and huge opportunities ahead for the combined bank and the Swiss financial center as a whole."
• Last week, UBS rehired Sergio Ermotti as chief executive to steer the massive takeover. According to recent reports, UBS is preparing to eliminate about 20 to 30% of jobs worldwide.
• Addressing shareholders for the final time as chief executive, Ralph Hamers acknowledged that the merger has led to new priorities for the bank, bringing a change at its helm.
• "The acquisition of Credit Suisse will be a major challenge," Hamers said.
• "It is expected to create a business with more than $5 trillion in total invested assets," he said.
• Price Action: UBS shares are down 0.81% at $20.83 during the premarket session on the last check Wednesday.