by Noele Illien

ZURICH (Reuters) – UBS will seek to reassure shareholders at its general meeting on Wednesday over the unexpected takeover of rival Credit Suisse in the biggest bank bailout since the last global financial crash.

Last month, Swiss authorities announced that UBS would acquire Credit Suisse in a whirlwind merger aimed at stemming the banking turmoil.

After a run on deposits, the Swiss government turned to UBS, which agreed to buy Credit Suisse for 3 billion Swiss francs (3.03 billion euros), while the Swiss state will provide more 200 billion francs in support and guarantees.

This decision angered not only shareholders, but also a large part of the Swiss population. A poll by political research firm gfs.bern found that a majority of Swiss were not in favor of the deal.

Shareholders of Switzerland’s largest bank will have the opportunity to express their views on Wednesday, but UBS could convince them with its stability.

For 2022, the bank reported net income of $7.6 billion and strong cash inflows in wealth management, the company’s flagship division.

Today, UBS is trying to figure out how to complete the daunting task of integrating Credit Suisse without weakening its strengths.

She already took a first step last week, announcing the surprise appointment of her former boss Sergio Ermotti as chairman and CEO to steer the massive takeover of Credit Suisse.

Wednesday marks the first official day of Sergio Ermotti taking over the job, but he is not expected to be present.

Instead, outgoing chief executive Ralph Hamers, who led the bank for less than three years, is expected to join chairman Colm Kelleher.

On Tuesday, the chairman of Credit Suisse, Axel Lehmann, apologized to shareholders for having led the group to the brink of bankruptcy, during the last general meeting in the history of the Swiss bank.

(Report Noele Illien; Kate Entringer, edited by Blandine Hénault)

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