The Swiss authorities are evaluating a total or partial nationalization of Credit Suisse Group (New York Stock Exchange: CS) as the only other option for the bank apart from the sale to UBS AG (NYSE: UBS).
Switzerland is considering either taking on the bank in full or by taking a significant equity stake if an agreement between USB (UBS) and Credit Suisse (CS) cannot be negotiated, according to a Bloomberg reportwho quoted familiar people.
Anything can happen as Swiss authorities try to find a solution to the situation by the time Asian markets open, late Sunday evening in Europe, Bloomberg said.
Bloomberg reported earlier on Sunday that Credit Suisse (CS) was pushing back the takeover bid for UBS (UBS) to $1 billion, as it argued the offer was too low.
UBS (UBS) offered 0.25 francs per share to small Swiss rival Credit Suisse (CS) on Sunday. UBS also added a significant adverse clause that terminates the transaction if its credit default swaps rise by 100 basis points or more, according to a Financial Times report.
The 167-year-old Credit Suisse (CS) has been caught up in the turmoil caused by the collapse of US lenders Silicon Valley Bank and Signature Bank over the past week.
Credit Suisse (CS) borrowed up to 50 billion francs ($54 billion) from the Swiss National Bank on Thursday.