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October 12, 2008 3:20:18 PM CDT

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UBS Writes Down $10B; Sells $11.5B Stake

Posted Dec 10, 07 7:32 AM CST in Business 

(Newser) – Investors from Singapore and the Mideast will breathe $11.5 billion in new capital into UBS as the Swiss banking giant announces that it will write down an additional $10 billion in subprime holdings, Bloomberg reports. The bank said the subprime losses, the biggest  by a European bank, will wipe out expected fourth quarter profits, resulting in a loss for the year.

UBS said the government of Singapore's investment arm will buy a 9% stake in the bank for 11 billion francs. An unidentified Middle Eastern investor, rumored to be the government of Abu Dhabi, which last month poured $7.5 billion into Citigroup, will add 2 billion more. UBS shares rose 1.5 francs to 58.7 francs, after initially dropping as much as 3.4%.

Sources Bloomberg, Wall Street Journal

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The logo on the headquarters of the Union Bank of Switzerland (UBS) is seen in this Feb. 14, 2006 file photo.   (Associated Press)
A logo of global financial services company UBS is seen in central London, Monday Oct. 1, 2007.   (Associated Press)
A building of the UBS bank in Zurich, Switzerland, Monday, Oct. 1, 2007. Swiss bank UBS AG.   (Associated Press)
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