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Shares in UBS rise on rumours of takeover bid

Published on 25/06/2008

25 June 2008

ZURICH – Shares in UBS AG rose by up to 4.3 percent Tuesday on rumours of a possible takeover of the Swiss banking giant and the announcement it is buying a Dutch wealth management company.

UBS shares reached CHF 23 Swiss after hitting a low of CHF 21.40 francs Monday, their lowest since 1998, according to online bank Swissquote.

Shares closed 3.35 percent higher on the Zurich exchange at CHF 22.80 francs Tuesday.

Traders in Zurich said the bargain price and rumours of a takeover bid by British rival HSBC Holdings spurred buying.

UBS also announced Tuesday it is buying Amsterdam-based VermogensGroep for an undisclosed sum. The firm manages billions of euros for rich clients.

[AP / Expatica]