OH MY GOD, BREAKING TOP STORY: GIC lost $10 billion on UBS

[downgrader]

70% of 11 billion is 7.7 billion Swiss francs

Convert to Singdollar is more than $10 billion

MY GOD! THIS IS A SHOCKING AMOUNT

TOMORROW MUST BUY STRAITS TIMES


Singapore
Home > Breaking News > Singapore > Story
Feb 11, 2010
GIC may have 70% paper loss
By Gabriel Chen

THE Government of Singapore Investment Corp (GIC) will convert its 11 billion Swiss francs (S$14.5 billion) worth of UBS notes at a price that may show a 70 per cent paper loss in its investment in the Swiss bank.

GIC will exchange the mandatory convertible notes that it bought two years ago for 230.7 million ordinary shares in UBS on March 5, according to a regulatory filing with the United States Securities and Exchange Commission.

This would mean the conversion price would be at 47.7 Swiss francs a share.

At Wednesday's closing price of 13.67 Swiss francs for UBS shares, these shares would be worth just 3.15 billion Swiss francs, or around 7.85 billion Swiss francs less than its original investment of 11 billion Swiss francs.

GIC declined to comment on Thursday.

Under the original agreement, the minimum conversion price was 51.48 Swiss francs and the maximum 60.23 Swiss francs, but GIC had said there was a reset due to certain anti-dilution clauses.

Read the full report in Friday's edition of The Straits Times.

 

[downgrader]

CONFIRMED BY CHANNEL NEWS ASIA

http://www.channelnewsasia.com/stories/singaporebusinessnews/view/1036975/1/.html

GIC to convert US$10b worth of UBS notes into shares
By Timothy Ouyang, Channel NewsAsia | Posted: 11 February 2010 2211 hrs


Photos 1 of 1






SINGAPORE : The Government of Singapore Investment Corporation (GIC) will convert 11 billion Swiss francs or some US$10 billion worth of UBS notes into shares.

This was announced in a filing with the US Securities and Exchange Commission.

According to calculations, the notes will be converted at 47.7 Swiss francs a share.

This points to a paper loss of approximately 70 per cent when compared with UBS' closing price of 13.67 on Wednesday.

But it is less than the conversion price of 51.48 - 60.23 Swiss francs agreed upon originally.

According to the filing, GIC will have a stake of 6.6 per cent in UBS after the conversion.

GIC declined comment when contacted by Channel NewsAsia. - CNA/ms

 

[downgrader]

$10 BILLION is $3,333 for each of the 3 million citizens

The amount is just staggering

 

[batman1]

CONFIRMED BY CHANNEL NEWS ASIA

http://www.channelnewsasia.com/stories/singaporebusinessnews/view/1036975/1/.html

GIC to convert US$10b worth of UBS notes into shares
By Timothy Ouyang, Channel NewsAsia | Posted: 11 February 2010 2211 hrs


Photos 1 of 1






SINGAPORE : The Government of Singapore Investment Corporation (GIC) will convert 11 billion Swiss francs or some US$10 billion worth of UBS notes into shares.

This was announced in a filing with the US Securities and Exchange Commission.

According to calculations, the notes will be converted at 47.7 Swiss francs a share.

This points to a paper loss of approximately 70 per cent when compared with UBS' closing price of 13.67 on Wednesday.

But it is less than the conversion price of 51.48 - 60.23 Swiss francs agreed upon originally.

According to the filing, GIC will have a stake of 6.6 per cent in UBS after the conversion.

GIC declined comment when contacted by Channel NewsAsia. - CNA/ms

Declined comment ??? Of course lah,KNNCCB lose so much taxpayers' money what to comment ??? Ya lah,always the same pattern .But when make same money,will immediately announce to the the media the good news and of course always take credit first for their superman talent !!!KNNCCB !!! PUI !!!
Shameless no-backbone parasites !!!

 

[longbow]

Cannot be true lah. How can lose so much in so short a time.

OS why convert?

 

[downgrader]

Cannot be true lah. How can lose so much in so short a time.

OS why convert?

True lah, already posted Straits Times and Channel News Asia

 

[downgrader]

$3,333 divided by 365 = about $9 a day, each meal $3

Can feed me for one year

In other words, $10 billion can feed entire citizen population for one year

 

[singveld]

not at all, for PAP, that is peanuts.

 

[kiwibird7]

All these so called 'LOSES' of MASSIVE proportions one after another in quick succession! In business when somebody loses usually another person or company GAINS. Money does not just disappear in a puff of smoke.

Without all the transparency, who is the wiser that it is simply not creative accounting of losing (transfering) money from the left hand to the right hand???? Who are all the 'unknown faces' behind the company or companies that are 'winning' (gaining) from all the GIC/GLC 'loses'?

Isn't the age old method of MONEY laundering that uses precisely this kind of MODUS OPERANDI. Intentionally losing dirty money (cash) in a business or in a gambling spree. Setting up a SHELL company running the CASINO to win the money and GAIN the profits which now becomes CLEAN MONEY????

 

[Devil Within]

Temasek must be a very good company to work in. Keep lossing money but no heads get rolled for the one heading the company. No need for accountability. Just gamble away the money and maybe one day will strike a win.

 

[kiwibird7]

Temasek must be a very good company to work in. Keep lossing money but no heads get rolled for the one heading the company. No need for accountability. Just gamble away the money and maybe one day will strike a win.

SORRY AMIGO! The intention perhaps was NOT to strike a win at all from all the investment punting.

Let's say I have access to all your funds to invest on your behalf. Then I set up 2 proxy companies: Company X and Company Y; both in actual fact belong to me even though my name may not be listed clearly as the owner.

Next, I invest your funds in Company X that somehow keep making loses to Company Y which of course profits. COMPREHENDO AMIGO!

Of course proving that is extremely difficult. But the possibility of such a shrewd scheme is not far fetch, don't you think?

 

[halsey02]

$3,333 divided by 365 = about $9 a day, each meal $3

Can feed me for one year

In other words, $10 billion can feed entire citizen population for one year

Vivien...will ask you, you want a plate of char kway twow for $3...which you cannot even get today @ all copi diam...even mai hum or egg...:p ha ha ha

 

[Leongsam]

Worry not! It's only a paper loss.

 

[halsey02]

Worry not! It's only a paper loss.

It wouldn't show in the annual P&L?...place under provision for sundry debtors?

 

[buddhaboy]

The Real breaking news will be when they start making money!
trust me.. the moment they make a $10 profit, the front page of ST will be splashed with this "euphoric" news.
i will be dancing down orchard road shouting "long live the PAP!"

 

[War Criminal]

Worry not! It's only a paper loss.

UBS is dead and buried so might as well say its a realized loss already.

 

[scoobyhoo]

SORRY AMIGO! ......

.......COMPREHENDO AMIGO!

at the end, lo siento, mi amigo.

 

[bryanlim1972]

SORRY AMIGO! The intention perhaps was NOT to strike a win at all from all the investment punting.

Let's say I have access to all your funds to invest on your behalf. Then I set up 2 proxy companies: Company X and Company Y; both in actual fact belong to me even though my name may not be listed clearly as the owner.

Next, I invest your funds in Company X that somehow keep making loses to Company Y which of course profits. COMPREHENDO AMIGO!

Of course proving that is extremely difficult. But the possibility of such a shrewd scheme is not far fetch, don't you think?

that is a very serious accusation if true. if u got evidence of this, u can topple gahmen

 

[ChaoPappyPoodle]

$10 BILLION is $3,333 for each of the 3 million citizens

The amount is just staggering

$10billion is almost twice what the PAP garment spent to safe jobs in SG under the worst economic crisis and conditions the modern world has seen.

It is clear as nuwater where the PAP's priority lies.

Mai tu liao! Vote the scums out of office and away from our money. With a new garment we may even get back a large sum of the money which can then be used for the betterment of te country and its citizens and not to prop up a bank that keeps money for criminals from all over the world.

 

[tua lam pah]

$10billion is almost twice what the PAP garment spent to safe jobs in SG under the worst economic crisis and conditions the modern world has seen.

It is clear as nuwater where the PAP's priority lies.

Mai tu liao! Vote the scums out of office and away from our money. With a new garment we may even get back a large sum of the money which can then be used for the betterment of te country and its citizens and not to prop up a bank that keeps money for criminals from all over the world.

that is the problem when only 1 party rules for seems like forever.....