Stefania Spezzati, Oliver Hirt and John O’Donnell

(Reuters) – UBS Group AG is in emergency talks to buy Swiss banking giant Credit Suisse as authorities scramble to head off unrest when global markets reopen on Monday, with UBS reportedly offering to pay up to $1 billion.

Swiss authorities are looking into imposing losses on Credit Suisse bondholders as part of the bailout, two people with knowledge of the matter said Sunday, while European regulators are worried that it could undermine investor confidence in other countries.

Authorities are rushing to rescue the 167-year-old bank, one of the world’s largest wealth managers, after a brutal week that saw the second and third-biggest bank failures in US history. As one of the 30 global banks considered systemically important, any deal with Credit Suisse could reverberate on global financial markets.

Bloomberg News, citing people with knowledge of the matter, said Credit Suisse is resisting an offer of up to $1 billion, saying it is too low and would hurt shareholders and employees holding deferred shares. If the takeover fails, Switzerland is considering taking over the bank entirely or retaining a significant stake, Bloomberg reported.

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