The Mexican government will inject $1.38 billion into Grupo Financiero Serfin SA, Mexico's third-largest bank, taking it over and completely wiping out existing shareholders.

Shareholders-including HSBC Holdings PLC, with a 19.9% stake-will be offered the chance to inject the cash themselves but are expected to decline because of the amounts involved. The government intervened Thursday because Serfin no longer has the capital to cover its obligations.

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