UBS

Deminor believes that European investors should federate with a view to defending their rights. Class actions have already been launched against UBS before U.S. courts in December 2007 and European investors should pre-emptively take action to ensure that they will be treated on an equal footing with American shareholders.

If you want to register for this case, please contact Mr Elie Nada +41 22 700 73 90 or elie.nada@deminor.com  for french or english speaker or Mr Bruno Wagner +49 221 554 05 475 or bruno.wagner@deminor.com  for german speaker.

You can also register by sending us an email ubs@deminor.com.

 

Deminor has attended the extraordinary shareholders' meeting of UBS of February 27, 2008 with a view to asking questions about UBS' risk management and its disclosure of risks to investors throughout 2007.

 

Deminor has carefully examined the answers provided by the UBS management to Ethos and Pictet. These answers confirm our belief that UBS has substantially increased shareholders' risks through a concentration of investments in the asset-backed and mortgage-backed securities markets (ABS/MBS) during 2006 and 2007. This high concentration of investments and risks has never been correctly disclosed to investors. Furthermore, whilst UBS' answers contain useful information about UBS' handling of the subprime crisis, it leaves many questions unanswered. More in particular, the winding down of Dillon Read Capital Management (DRCM) and the reintegration of its assets and liabilities into UBS' balance sheet have not been sufficiently explained by the UBS management. It also remains unclear why UBS has not integrated market signals regarding the deterioration of the market value of ABS/MBS into its internal audit of April, 2007 and its 2007 second quarter and third quarter results.

 

Deminor believes that further clarification of these issues is needed, and that the bank needs to be more transparent with its shareholders about its handling of the subprime and ABS/MBS crisis. Deminor will consequently support Ethos' and Pictet's request of a special audit.

 

Deminor furthermore believes that UBS investors, who have supported all these risks over the last two years, should be given an opportunity to participate to the recapitalisation of their bank, in order to allow them to fully benefit from the bank's recovery and its future value creation. Deminor therefore supports Profond's proposal to allow existing UBS shareholders to subscribe to a capital increase by making use of their preferential subscription rights.

Depending on the answers received to our questions, Deminor will decide on the concrete steps it will recommend to the many shareholders who have contacted us.

 

For more information about UBS, please send us an email to ubs@deminor.com.

 

 

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Q&A UBS