UBS rolls out £7.9bn rights issue
The biggest European casualty of the sub-prime turmoil in terms of write-downs is seeking to bolster its balance sheet with a massive rights issue
UBS has turned to its shareholders to bail it out of its sub-prime troubles
with a rights issue of $16bn Swiss Francs (£7.9bn).
The bank hopes to generate the extra capital as shareholders snap up the
heavily discounted shares in a bid to galvanise its balance sheet, the
In making the rights issue, the Swiss bank has followed the example of other
institutions taking steps to firm up their capital cushion.
RBS has asked for £12bn, HBOS is seeking £4bn and Bradford & Bingley
hopes to generate £300m.