UBS is planning to hold discussions with veteran deal maker Michael Klein about ending a deal between Credit Suisse and Klein’s advisory boutique, reported The Financial Times (FT).

The deal was aimed at creating an investment-banking spinoff under the CS First Boston brand by merging Klein’s advisory boutique with Credit Suisse’s investment banking business.

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Klein, who was part of Credit Suisse’s board, was expected to lead the spinoff from New York as a standalone entity.

Last month, Credit Suisse announced the acquisition of the investment banking arm of M. Klein & Company (MK&C), part of the Klein Group, for $175m.

Termination of the deal could save majority of Credit Suisse’s investment bank after UBS agreed to purchase its beleaguered Swiss rival, reported The New York Times.

UBS has appointed a legal team to review how to cancel the contract reached by Credit Suisse with Klein without incurring heavy expenses, added FT citing people privy to the development.

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The bank, which is set to buy Credit Suisse for $3.2bn, is reportedly looking to reduce the size of the firm’s investment bank in a bid to curb the losses of its newly bought firm.

A person close to UBS was quoted by FT as saying: “We assume he (Klein) is cherry picking.

“The deal was done when the selling bank had a gun held to its head and we are no longer in that position.”

The person added: “We are not here to enrich Michael Klein at the expense of our shareholders.”

Representatives for both UBS and Credit Suisse refused to provide any details.

Klein was not available for giving any update on the matter.