UBS pays nothing for Enron acquisition
UBS Warburg, investment bank, has acquired the main business of collapsed US energy giant Enron without even having to pay a nominal cent.
UBS will not, according to a filing at a US bankruptcy court, pay anything for the business or take on any of the company’s vast debts, but the investment bank will divide a third of the company’s profits between Enron and its creditors.
The deal, agreed by an Enron creditor committee, may still face opposition from other creditors who are angling for more favourable terms.
UBS is expected to buy out any profit sharing rights later. It will employ around 800 of the energy division’s staff.