Switzerland is planning to nationalize all or part of Credit Suisse

March 19 () –

Swiss authorities are considering a full or partial nationalization of Credit Suisse in the event that a deal with UBS does not close.

Switzerland is considering taking over the bank entirely or keeping a significant equity stake if a takeover by UBS fails due to the complexity of the deal and the short time frame set to reach a deal, Bloomberg has reported.

UBS would be finalizing the purchase of Credit Suisse with an offer of up to 1,000 million dollars (930 million euros) while the country’s authorities prepare a change in legislation to speed up the transaction before Monday, as reported by the Financial Times on Sunday.

This deal could take place as early as this Sunday night at a price of 0.25 Swiss francs per share, well below Credit Suisse’s Friday closing price (1.86 Swiss francs).

However Credit Suisse, which closed on Friday with a market value of about 7.4 billion francs ($8 billion), believes the offer is too low and would hurt shareholders and employees who have deferred shares, Bloomberg has reported. .

The situation is uncertain and may change, as the financial authorities try to finalize a solution for the bank before the opening of the Asian markets, which is late in the afternoon in Europe, Bloomberg explained.

The acquisition of UBS presents multiple complexities. The financial entity is asking the Government to assume certain legal costs and possible future losses.

The Swiss Finance Ministry has declined to comment.