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In 1997, Bankgesellschaft and Bankverein merged to form UBS and 13,000 jobs were lost. Looking back, it is surprising how communicatively the mega-deal was handled.
This image stuck: Marcel Ospel (left), director of the banking association, and Mathis Cabiallavetta, director of the banking association, announced the grand merger on December 8, 1997.
“Only two left”: this was the title of the British “Financial Times” on December 9, 1997, when it announced the merger of Bankgesellschaft (SBG) and Bankverein (SBV). The new UBS suddenly became the largest bank in the world.
“There was only one more” – This headline probably won’t appear for the foreseeable future, and if it does: a combined UBS / Credit Suisse wouldn’t even rank in the world’s top 10. The banking world has completely changed.
And communication with her. Today, the usual media response to merger speculation is, “We don’t comment on rumors.” If you ask the UBS and CS bank directors directly about the sense or nonsense of a merger, they sidestep: “You will understand that I am not commenting on that as a matter of principle,” UBS chief Sergio Ermotti said in a interview with “Schweiz am Weekend”.
When Rainer E. Gut, Chairman of the Credit Suisse Board of Directors, wanted to merge with SBG in 1996, he got involved. SBG Chairman Robert Studer did not respond “without comment” but described a merger as “irresponsible”, also because of the downsizing.
Started April 1997 – December ended
In 1997, the SBG joined the SBV. The talks between their bosses Mathis Cabiallavetta and Marcel Ospel began in April. The matter was kept secret. On July 1, UBS broke up negotiations. The first rumors of mergers circulated.
On October 9, UBS decided to submit a merger offer to the banking association. Two months later, on Friday, December 5, the boards of directors of SBG and SBV approved the merger. Rumors were circulating in the stock market, but analysts said it was difficult to imagine a merger because the cultures of the banks were so different.
They stuck to their communication plan. In the pre-digital era, it worked like this: bank staff representatives were briefed on Friday, Federal Councilors and the presidents of the SP, FDP, CVP and SVP on Sunday, and at 8 p.m. UBS sent an invitation to a press conference on Monday by fax. December 8.
The bomb then exploded with the statement on Monday morning at 6.30 a.m.
