UBS shareholders OK $12 billion infusion

Chief executive Marcel Ospel urged the move amid calls for him to step down in the wake of $19 billion in write-downs.

UBS AG shareholders approved a $12 billion capital infusion from the Singapore government and an unnamed Middle East investor.
The deal is structured as a convertible bond that will pay an interest rate of 9% for up to two years, according to MarketWatch.
Marcel Ospel urged the move amid calls for him to step down in the wake of $19 billion in write-downs stemming from the U.S subprime meltdown.
Mr. Ospel is banking on the fresh capital breathing new life into the Zurich, Switzerland-based bank and return it to profitability after posting a record fourth-quarter loss of $11.3 billion (InvestmentNews, Feb. 14)
The approved $12 billion capital campaign comes two and a half months after UBS disclosed that it had received an emergency injection of funds from Singapore and the Middle East in response to a $10 billion-write down (InvestmentNews, Dec. 10).