UBS to Sell Stakes After $10 Billion in Writedowns |
| Bloomberg - Dec 10, 2007 |
UBS AG will write down U.S. subprime mortgage investments by $10 billion, the biggest such loss by a European bank, and replenish capital by selling stakes to investors in Singapore and the Middle East.
Europe's largest bank by assets plans to raise 13 billion Swiss francs ($11.5 billion) selling bonds that will convert into shares to Government of Singapore Investment Corp. and an unidentified Middle Eastern investor, Chairman Marcel Ospel said on a conference call with reporters today.
UBS scrapped a forecast for a fourth-quarter profit and may post its first full-year loss since the Zurich-based company was created through a merger a decade ago. The collapse of the U.S. subprime mortgage market has led to about $76 billion of losses and markdowns at securities firms and banks this year. UBS rose as much as 3.3 percent in Zurich trading after the company followed Citigroup Inc., the largest U.S. bank, in taking on strategic investors to bolster capital.
Read Full Article from Bloomberg
- Posted: 2007-12-10 09:39:54
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