UBS is being bailed out by the Government of Singapore Investment Corporation GIC, which is investing CHF11 billion $9.74 billion, and an undisclosed strategic investor in the Middle East, who is investing CHF2 billion, in the Swiss bank. Both investors will buy mandatory convertible notes bearing a coupon of 9% which are convertible into shares in two years. The proceeds will count as tier-1 capital. The issuance is subject to shareholder approval in February 2008.
Analysts estimate that GIC will have a 9% stake in UBS and the unidentified...
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