GIC to convert UBS notes into shares, losing 70% of its investment

[SNAblog]

Spring cleaning before the election?

http://www.reuters.com/article/idUSSGE61A07T20100211

Singapore's GIC to convert UBS notes into shares-filing

SINGAPORE, Feb 11 (Reuters) - Singapore's sovereign wealth fund GIC will convert 11 billion Swiss francs ($10.33 billion) worth of UBS (UBSN.VX) notes into shares on March 5, according to a U.S. regulatory filing, at a price that shows a 70 percent erosion in its investment in the Swiss bank.

GIC [GIC.UL] will convert the notes into 230.7 million ordinary shares of UBS, according to a filing with the U.S. Securities and Exchange Commission.

Based on a Reuters calculation, the assumed conversion price will be 47.7 Swiss francs a share versus UBS's last closing price of 13.67 Swiss francs.

GIC declined to comment.

The filing showed that GIC would have a stake of 6.6 percent in UBS, assuming the notes are converted into shares.

GIC was one of the first sovereign wealth funds to pump billions into Western banks rocked by the financial crisis.

The fund said in September its investment in UBS was still showing a loss. ($1=1.065 Swiss Franc)

(Reporting by Saeed Azhar; Editing by Lincoln Feast)gl

 

[poore]

now really long term investment liao

 

[longbow]

GIC must have information that UBS share about to take off. Other wise why convert the debt/ Debt more senior than equity waht.

 

[Watchman]

They should not convert . They should wait out !

 

[MarrickG]

what are they thinking?

 

[poore]

read in the papers ,mandatory they convert....

wat a great clause they agreed to when they took up the investment

 

[SneeringTree]

Wasn't Sinkapore's entire 2009 budget about 20 billion only? So GIC lost 1/2 year's worth of budget in just ONE investment.

 

[Lee Hsien Tau]

GIC must have information that UBS share about to take off. Other wise why convert the debt/ Debt more senior than equity waht.

Yah. Take off alright.:p
Like you're gonna lose sight of it?
Some idiot.