UBS Group has offered to buy Credit Suisse for up to $1 billion, with the Swiss government planning to change the country’s laws to bypass a shareholder vote on the deal, the Financial Times reported on Sunday, citing sources close to the talks.

Credit Suisse and UBS declined to comment, and the Swiss government did not immediately respond to a request for comment.

Authorities scrambled to save the 167-year-old bank, which is one of the world’s largest wealth managers, before financial markets reopened on Monday.

As one of the 30 systemically important banks worldwide, the failure of Credit Suisse would spread throughout the financial system.

The Financial Times reports that the all-stock deal will be signed on Sunday.

Citing sources familiar with the matter, the Financial Times reports that an offer of 0.25 Swiss francs ($0.27) per Credit Suisse share was made early Sunday, well below Friday’s closing price of 1.86 Swiss franc, and almost destroys the existing shareholders of the bank.

UBS also pushed for a “significant adverse change” that would cancel the deal if credit default spreads widen by 1 percentage point or more, the paper added.

However, the FT noted that the situation is moving quickly and there are no guarantees that terms will remain unchanged or that a deal will be reached.

A person familiar with the earlier discussions told Reuters that UBS had sought $6 billion in guarantees from the Swiss government as part of a possible takeover of its rival.

The collateral required by UBS will cover the costs of liquidating parts of Credit Suisse and potential legal costs, two of the people told Reuters.

The source previously warned that the talks had hit significant hurdles and that 10,000 jobs could be cut if the two banks merged.

The Swiss Bank Employees’ Association demanded on Sunday the immediate creation of a task force to deal with the risk to jobs.

Fierce talks over the future of Credit Suisse over the weekend followed a brutal week for banking stocks and efforts in Europe and the United States to prop up the sector following the collapse of US banks Silicon Valley Bank and Signature Bank.

US President Joe Biden’s administration took steps to support consumer deposits, while Switzerland’s central bank lent $53 billion to Credit Suisse to shore up its balance sheet.

UBS has been pressured by Swiss authorities to take control of its local rival to contain the crisis, two people familiar with the situation said.

The plan could trigger a spin-off of Credit Suisse’s Swiss unit, with Bloomberg reporting that takeover talks have cast doubt on plans to spin off its investment bank under the First Boston brand.

US authorities are working with their Swiss counterparts to help broker a deal, Bloomberg reports, while Sky News reports that the Bank of England has told international partners and UBS that it will back a proposed takeover of Credit Suisse, which sees the UK as a key market. (Source: news.ro)