UBS Group AG has made an offer to buy Credit Suisse for up to $1 billion, the Financial Times reported on Sunday.

There has been a made scramble to rescue the 167-year-old bank before financial markets reopen on Monday. UBS was reportedly under much pressure from the Swiss govt to take over its big rival to bring the unfolding crisis under control.

Credit Suisse is among the world’s largest wealth managers and one of the 30 global systemically important banks, and its failure would ripple throughout the entire financial system, authorities fear.

The latest development follows a brutal week for banking stocks and efforts in Europe and the United States to shore up the sector following the collapse of US lenders Silicon Valley Bank and Signature Bank.

According to sources cited by FT, the all-share deal is set to be signed soon.

The deal will be priced at a fraction of Credit Suisse’s closing price on Friday, the report said. Such pricing means that it will all but wipe out the target’s shareholders, it added.

Under the proposed deal, a price of 0.25 Swiss francs a share will be paid in UBS stock, which is far lower than Credit Suisse’s Friday closing price of SFr1.86.According to some reports, the plan could lead to Credit Suisse’s Swiss business being spun off.

The Swiss government is planning to change the country’s laws to bypass a shareholder vote on the deal.

UBS and Credit Suisse, Switzerland’s two biggest banks, have been locked in discussions with regulators since Wednesday.

Reuters had earlier said quoting a source that UBS was seeking $6 billion from the Swiss government as part of a possible purchase of its rival.

UBS is reportedly insisting on a ‘material adverse change’ that will void the deal in case its credit default spreads jump by 100 basis points or more.

As per Reuters, UBS is looking into a takeover of Credit Suisse that could see the Swiss government offer a guarantee against the risks involved.

The FT report says that UBS is seeking concessions and protections from the government, particularly from any pending legal cases and regulatory investigations into Credit Suisse that could result in fines or losses.

As of now, however, there appears not much chance that it will get indemnity from any losses on assets, it added.

The situation, however, remains highly fluid and there is no guarantee that a deal will be reached, the report quoted insiders as saying.

Credit Suisse declined to comment, while UBS Group and the Swiss government did not immediately respond to requests for comment, a Reuters report said.

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