Reuters - UBS investors to consider new capital hike: report

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UBS investors to consider new capital hike: report

Sunday, Mar 23, 2008 1:5PM UTC

ZURICH (Reuters) - UBS <UBSN.VX> shareholders will consider a proposal for a fresh capital hike of 10 billion Swiss francs ($9.88 billion) next month, according to a Swiss newspaper report on Sunday.

The SonntagsBlick newspaper quoted Herbert Braendli, head of Swiss pension fund Profond, as saying UBS had confirmed that a Profond proposal to raise 10 billion francs would be on the agenda at the bank's general meeting on April 23.

UBS said it had received a request from Profond to put an item on the agenda, which will be sent to shareholders with the official invitation at the end of March, but declined to give further details.

"We received a request from Profond to put an item on the agenda," spokesman Serge Steiner said. "UBS is currently considering all requests for the agenda."

UBS is the European bank hardest hit by the credit crisis and booked $18 billion in subprime writedowns last year.

Analysts expect it to write down an additional 10-20 billion francs in 2008 and some expect it to need to raise more money to shore up its capital.

The bank has already raised 13 billion francs through a convertible bond sold to investors in Singapore and Saudi Arabia and aims to raise around 6 billion francs more through various measures including issuing a stock dividend.

(Reporting by Sam Cage; editing by Rory Channing)