Bern and Zurich, Switzerland (GenevaLunch) – The Swiss federal government’s CHF6 billion loan, in the form of mandatory convertible notes, will not be exchanging the securities for stock in the company immediately, Bern announced Tuesday morning 9 June, the first day when it is able to do so.
UBS has been in talks with the government and regulatory authorities about paying back the loan, but Bern must approve any repayment.
The government press release (Fre) notes that it will take action “in due time, but that in any event it will not convert or sell the notes for a share price under CHF18.21. UBS shares Monday evening were at CHF14.84.
Background, Bloomberg, 8 June 2009
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News story, GenevaLunch, 9 June 2009.
Filed under: Business
Tags: Bern, bonds, CHF6 billion, government, loan, mandatory convertible notes, Politics, shares, Switzerland, UBS, Zurich
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