The takeover of Credit Suisse by UBS is a mammoth task for all involved. The federal government is now hiring consultants to help it implement its part of the deal.
The Swiss Federal Finance Administration (FFA) awarded a consulting contract in connection with the guarantees for the Credit Suisse rescue takeover to the consulting firm Alvarez & Marsal Switzerland (A&M). The company will support the federal government in the drafting of the contract for the liquidation of assets.
As part of the emergency takeover, the Swiss government granted a guarantee to UBS to cover losses incurred from the disposal of assets of Credit Suisse. To effect the contractual guarantee, the Swiss government needs advice and support.
Lucrative Mandate
The mandate awarded to A&M is worth up to 8.7 million Swiss francs ($9.7 million), made up of a basic contract worth 2.95 million francs with options worth around 5.76 million francs, according to documents published on the Simap.ch procurement platform.
Since the merger has to be completed quickly, contractural guarantees covering losses have to be prepared rapidly in consultation with the federal government.
Legal Support Obtained
A&M was selected because is viewed as having relevant experience with global banks and related portfolios, providing services from a single source. It presented a clear and convincing proposal and can provide significant support to the federal government in project management.
A little more than a week ago, the Finance Department requested legal support by commissioning the Zurich law firm Niederer Kraft Frey (NKF) to advise on the implementation of the guarantee. The price tag? Up to 10.3 million francs.
