UBS' multi-billion dollar buyout of rival Credit Suisse isn't a "done deal" yet, according to the CEO of management consultancy Opimas. On Sunday, it was announced that UBS would buy its struggling rival and Switzerland's second largest bank for $3.25 billion.

But, while the news was welcomed by central banks in the U.S. and Europe, not everyone is happy with the deal.

"This is a deal that is going to face a lot of legal challenges and indeed a lot of political challenges," said Opimas CEO, Octavio Parenzi. "I think this deal is going to prove hugely unpopular with the Swiss public who are likely to turn against it at some point in the near future."

Parenzi, whose firm provides management consultancy on global capital markets, also believes that the price of the buyout will have raised eyebrows and could result in a backlash.

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"I don't think we're anywhere near out of the woods yet with this deal," he added. "A bunch of the bond holders at Credit Suisse have been wiped out, the equity holders are unhappy because basically the Swiss government has taken property away and given it to UBS at a much lower rate than the market rate was on Friday afternoon.

"We're going to see a lot of challenges on this, I don't think it's a done deal yet."

Financial markets recover

Earlier on Monday, markets across Europe clawed back initial falls as investors early across the continent reacted to the buyout. Deutsche Bank, BNP Paribas and HSBC all opened sharply lower, but rallied throughout the day to regain earlier losses.

It follows Sunday's dramatic announcement from authorities in Switzerland that a deal had hastily been put together to allow banking giant UBS buy the country's second-largest bank Credit Suisse.

The Swiss Government has been at pains to stress that the deal, which includes billions in government backed-loans and credit lines for UBS, does not amount to a bailout.

"This is no bailout. This is a commercial solution because UBS is taking over Credit Suisse," Switzerland's Finance Minister Karin Keller-Sutter told a press conference in Bern. "The bankruptcy of Credit Suisse would have had a huge collateral damage - on the Swiss financial market also internationally."

Calling for confidence

The announced deal, which has been described by some analysts as a shotgun marriage of the two former rivals, has been welcomed by central banks in both Europe and the U.S..

In a statement, ECB President Christine Lagarde said: "I welcome the swift action and the decisions taken by the Swiss authorities. They are instrumental for restoring orderly market conditions and ensuring financial stability."

The sentiment was echoed in other European capitals.

In Berlin, a finance ministry spokesperson said "the German financial system is stable," while in Paris, the Governor of the Bank of France, Francois Villeroy de Galhau, told the Le Monde newspaper that France's banks all have "profitable business models, strong control on their risks, and a high degree of regulatory compliance."

End of an era

Credit Suisse operated as an independent bank for over 167 years and UBS's takeover has stunned many in Switzerland, a nation that has long prided itself on its successful banking and financial services sector.

UBS Chairman Colm Kelleher, who will lead the combined entity as chairman, described the deal as a great opportunity, although there was lots of work to do.

"We will be de-risking a lot of those tricky businesses that we are inheriting from Credit Suisse," he told reporters. He said it was far too early to discuss job cuts at Credit Suisse.

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