UBS Will Buy Back Up To $3.5B Of ARS

Law360, New York (July 16, 2008, 12:00 AM EDT) -- UBS AG announced Tuesday it will buy back up to $3.5 billion of auction rate securities, which have been an ongoing focus of litigation since the market for them froze up in February.

The Swiss bank said it would buy back all auction preferred stock sold by closed-end tax-exempt funds and held in UBS accounts as of Tuesday. UBS will finance the buyback by selling preferred stock in a private placement made by a newly created trust, it said.

Auction rate securities are bonds and preferred...
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