Switzerland Selling UBS Stake After Tax Accord With US
Switzerland Selling UBS Stake After Tax Accord With US
http://www.bloomberg.com/apps/news?pid=20601087&sid=aQ9MeWnsvofc
A day after a landmark agreement was finalized between the US tax authorities and the UBS, the Swiss government has decided to sell its holding in the country’s biggest bank to institutional investors. The Swiss government had purchased UBS mandatory convertible notes last year to help UBS reduce its toxic assets in times of recession. The settlement of the US lawsuit appears to have strengthened the government’s confidence in the bank. The placement of stake with the financial institutions will provide UBS with the required flexibility to strengthen its operations. The Swiss government is expected to make significant profits on its sale of 332.2 million shares for 16SFr-16.50 SFr per share. UBS has also said it intends to make itself free of government support as soon as possible.
Daniel Elliot