Swiss banking giant UBS has revealed it will make one of Europe's largest ever rights issue calls, asking shareholders for CHF16m (£7.94bn).
Shareholders will be entitled to seven new UBS shares for every 20 already held. The shares will be priced at CHF21, a discount of over 30% on last night’s close at CHF30.64. The right issue comes just a day after UBS completed the sale of $15bn in US real estate related assets to BlackRock. The Zurich-based firm has been the second hardest hit global bank during the sub-prime crisis, writing down about $37bn in bad debt. “The rights issue was fully underwritten by a syndicate of banks on 1 April 2008 and the related capital increase was authorized by the shareholders of UBS AG on 23 Apr...
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