UBS has been the worst-hit bank in Europe from the US mortgage crisis
|
The Swiss bank UBS, which has been among the worst hit by the credit crunch, has launched its rights issue.
It is raising 16bn Swiss francs ($15.5bn; £8bn) by offering seven new shares for every 20 shares held at a price of 21 francs.
The price is about a third below its current market value and 73% below its peak level, set less than a year ago.
It is the latest move by UBS to raise new money to cover its $37bn writedowns on assets linked to US mortgage debt.
On Wednesday, UBS finalised a $15bn deal to sell discounted mortgage-related assets to the US fund manager Blackrock.
It has also received cash injections from investors in Singapore and the Middle East.
|
BBC NEWS CHANNEL
~RS~a~RS~Domestic~RS~q~RS~~RS~z~RS~15~RS~){kind=small}
~RS~q~RS~~RS~z~RS~15~RS~)
E-mail this to a friend
Printable version
BBC News
Bookmark with:
What are these?