BL: UBS Falls on Report Bank May Post 5 Billion-Franc Writedown
By Daniela Silberstein
June 18 (Bloomberg) -- UBS AG fell in Zurich trading after JPMorgan Chase & Co. said Switzerland's biggest bank may write down an additional 5 billion Swiss francs ($4.8 billion) and post a loss of 4.55 francs per share in 2008.
The bank declined as much as 88 centimes, or 3.4 percent, to 25.92 francs and was trading at 25.22 francs as of 10:32 a.m. local time.
``UBS remains a building site,'' London-based analysts led by Kian Abouhossein wrote in a report to investors, citing estimated net new money outflows of 41 billion francs in the second quarter and an additional markdown of 5 billion francs.
The brokerage company lowered its price estimate for UBS shares to 33 francs from 43 francs to adjust for the completion of the rights offer.
To contact the reporter on this story: Daniela Silberstein in Zurich at dsilberstei2@bloomberg.net.
Last Updated: June 18, 2008 05:07 EDT
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