The Swiss authorities are weighing the possibility of a full or partial government intervention if the planned deal between Credit Suisse and UBS does not close as hoped. In this scenario, the state could step in to assume full ownership or retain a substantial stake to ensure financial stability and protect saver confidence, according to reports circulating in the market.
Switzerland is actively considering one of two paths: taking over the bank entirely or maintaining a meaningful share if the UBS takeover faces insurmountable obstacles tied to the deal’s complexity. Officials are racing to reach a decision within a critically tight window, sources cited by Bloomberg indicate.
There are discussions about UBS potentially acquiring Credit Suisse, with a proposed price tag of around 1,000 million dollars (approximately 930 million euros). In parallel, there is talk of a legislative maneuver to speed up the process ahead of a looming Monday deadline, as noted by the Financial Times.
Speculation has mounted that a deal could be announced in the near term, perhaps even before the markets close for the weekend, with an offer price pegged at roughly 0.25 Swiss francs per share. This is well below Credit Suisse’s closing price on the prior Friday, which stood at about 1.86 Swiss francs per share.
Credit Suisse, which closed the week with a market capitalization around 7.4 billion francs, remains publicly cautious about the low offer, warning that such pricing would not only reduce value for shareholders but could also impact employees whose compensation and deferred share schemes would be affected. Bloomberg reported these concerns and the potential consequences for stakeholders.
The situation remains fluid and could change quickly. Bloomberg has noted that financial authorities are seeking a settlement approach that could be finalized before the Asian market opening later in the European session, aiming to minimize disruption and preserve confidence in the banking system.
Taking on UBS involves a range of complexities. The government is said to face legal costs and the possibility of future losses tied to the integration, restructuring, and potential guarantees that might be required in the transition.
The Swiss Ministry of Finance has declined to comment on the evolving discussions at this stage, leaving markets to assess the potential paths forward and the implications for national banking policy, shareholder value, and employee interests.