ZURICH (Reuters) - UBS , the world's largest wealth manager, said simple market opportunity was behind its decision to seek about 3.8 billion Swiss francs ($3.46 billion) of new capital in a share offer.
Shares in UBS (UBSN.CH)were indicated to open 2.9 percent lower, against expectations of a slightly higher Swiss blue-chip index SMI <.SSMI>, data provided by bank Clariden Leu showed.
"The share placement is not related to any specific events," a UBS spokesman said. "UBS is taking this action now in order to take advantage of current market opportunities." The Swiss bank, one of the world's hardest-hit major banks in the global financial crisis, said on Thursday it was offering about 293.3 million new shares at a price of 13.00 Swiss francs per share, a 6.9 percent discount to Thursday's closing price of 13.97. It also said it would post a second-quarter net loss.
"Not much has changed yet. There are still red numbers, money outflows are continuing and the hunger for capital has still not been sated," a trader said.
"At current valuations, UBS offers an attractive risk/reward ratio," said Credit Suisse analysts, who raised their rating on UBS shares to "outperform" from "neutral" and increased its share price target to 20 Swiss francs from 16.
($1=1.099 Swiss francs)
(Reporting by Jason Rhodes and Rupert Pretterklieber; Editing by Greg Mahlich)
