UBS, HSBC left with big AMS stake after low demand for share sale


© Reuters. FILE PHOTO: The Logo of Austrian sensor specialist AMS is seen on their factory in Unterpremstaetten

VIENNA (Reuters) – UBS (S:) and HSBC (L:) will hold a combined 15% stake in AMS (S:) after demand for the sensor maker’s share sale was so low they had to buy up stock as underwriters of the deal, AMS said in a statement on Wednesday.

Swiss-listed AMS issued 190 million new shares and raised 1.75 billion francs ($1.8 billion) to help fund its 4.6 billion euro ($5 billion) takeover of German lighting group Osram (DE:), with which it wants to create a European leader in sensors and lights.

Only 62% of AMS shareholders and subscription rights holders bought the new shares. An additional 8% could be sold in the market and the remaining shares will be taken up by the banks according to their underwriting quota, AMS said.

Switzerland’s UBS and Britain’s HSBC also provided, along with Bank of America (NYSE:) Merrill Lynch, a 4.4 billion euro bridge loan for the Osram purchase. [nL8N2B41FL]

($1 = 0.9659 Swiss francs)

($1 = 0.9142 euros)

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