UBS plans share increase to fund US acquisition

The PaineWebber building in New York City Keystone

Switzerland's largest financial group, UBS, is to invite shareholders to approve a share capital increase to fund the merger transaction with New York stockbroker, PaineWebber.

This content was published on August 3, 2000 - 10:56

A UBS communiqué said an extraordinary general meeting would be held on September 7, when shareholders would be requested to approve the creation of 38 million new UBS shares in the form of authorised capital and 17 million in the form of conditional capital.

The board of directors will propose that UBS shareholders be paid a partial dividend of SFr4.50 ($2.68) per share relating to the first nine months of the year.

UBS and PaineWebber announced they had entered into a definitive merger agreement on July 12, in a deal that is expected to make UBS one of the world's leading asset managers.

The communiqué said the merged company would be worth an estimated SFr21 billion, based on UBS's share price before the announcement and assuming that PaineWebber employees exercise all their options.

The partial dividend is intended to ensure equal treatment of UBS shareholders and PaineWebber stockholders because the US company's clients will already have been paid interim dividends for nine months of the year at the merger exchange date.

swissinfo with agencies

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In compliance with the JTI standards

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