Shareholders approve UBS bailout plan.

Fonction NEWS

UBS AG shareholders overwhelmingly approved an SFr 12 billion capital infusion from foreign, government-owned funds on Wednesday aimed at shoring up Switzerland's largest bank in the face of massive losses linked to the U.S. sub-prime mortgage crisis.

Ahead of a special shareholders' meeting at the end of February, it was rumoured that UBS Chairman Marcel Ospel would be pressed to resign. He fended off shareholder criticism and pushed through a recapitalisation deal with so-called sovereign wealth funds based in Singapore and an unidentified Middle East country.

The approved share issue will make the Government of Singapore Investment Corp. the single largest shareholder at UBS--and give it de facto blocking power. Another stake, worth SFr 2 billion, will go to an anonymous Middle Eastern investor, believed to be linked to Saudi Arabia.

"With around about ten per cent of the shares, Singapore can...

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