May 16 Reuters UBS Group AG expects a financial hit of about 17 billion from the takeover of Credit Suisse Group AG, the bank said in a presentation early on Wednesday as it prepares to complete the rescue of its struggling Swiss rival.

UBS estimates a negative impact of 13 billion from fair value adjustments of the combined group39;s assets and liabilities. UBS also sees 4 billion in potential litigation and regulatory costs stemming from outflows, the bank said.

UBS, however, also estimated it would book a oneoff gain stemming from the socalled negative goodwill of 34.8 billion by buying Credit Suisse for a fraction of its book value.

The financial cushion will help absorb potential losses and could result in a boost to the lender39;s secondquarter profit if UBS closes the transaction next month as planned.

UBS said the estimates were preliminary and the numbers could change materially later on.

The bank also said it might book restructuring provisions after that, but offered no numbers.

Analysts at Jefferies had estimated restructuring costs, litigation provisions and the planned winding down of the noncore unit could total 28 billion.

Meanwhile, UBS has implemented a number of restrictions on Credit Suisse while the takeover is underway.

In certain cases, Credit Suisse cannot grant a new credit facility or credit line exceeding 100 million Swiss francs 113 million to investment grade borrowers or more than 50 million francs to noninvestment grade borrowers, a…