Investment Bank

Significant deals

Mergers and acquisitions

Mergers and acquisitions activity remained strong. During the first nine months of 2006, we advised on 285 transactions with a deal volume of USD 473 billion, a 19% increase compared with the same period a year earlier. In Europe, deal volume increased by 43%. Significant deals this quarter included:

– joint financial advisor and joint lead arranger to Companhia Vale do Rio Doce (CVRD), the world’s leading iron ore miner, on its USD 19.3 billion all-cash offer for Canadian-based nickel company Inco

– joint financial advisor to General Electric on the proposed USD 3.8 billion sale of GE Advanced Materials to Apollo Management. We were also joint bookrunner on associated financing related to the transaction

– sole financial advisor to funds managed by private investment firm Providence Equity Partners on the GBP 1.5 billion acquisition of Caudwell Holdings, the holding company for UK mobile phone retail chain Phones4U.

Equity underwriting

Our global equity capital markets deal volumes were USD 11.9 billion in third quarter, down 2% compared with the same period last year. In the overall market, volumes fell 14%. Global market share for the quarter on all primary equity products was 8.8%, placing UBS third in the quarter. In the year to date, UBS placed third with a market share of 7.9%. Key transactions in the quarter included:

– joint bookrunner on the USD 4.4 billion IPO of Standard Life Assurance, a financial services group offering pensions, life assurance and health insurance

– joint bookrunner on the USD 2.4 billion follow-on offering for China Merchants Bank, China’s largest credit card issuer

– joint bookrunner on the USD 1.5 billion follow-on offering for Companhia Energetica de Sao Paulo, the largest power company in the Brazilian state of Sao Paulo.

Fixed income underwriting

Primary issuance in the international bond markets in- creased 2% from second quarter. Demand for new issues remained robust on improving market sentiment and investor interest despite the summer slowdown. UBS’s market share of primary volume increased to 4.9% from 3.8% in second quarter. We performed well in all sectors and markets – underwriting 83% more volume than in the same period last year. We lead managed 105 deals during the quarter, including:

– joint bookrunner on a dual tranche GBP 750 million and EUR 900 million hybrid securities offering for major German electric engineering and electronics firm Siemens, the largest corporate hybrid to date

– joint bookrunner on a USD 5.5 billion multi-tranche offering for Anadarko Petroleum in support of the acquisition of Kerr-McGee Corporation and Western Gas

– joint bookrunner on USD 1.4 billion of high yield notes in support of Blackstone’s USD 4.3 billion acquisition of Travelport, one of the world’s largest collections of travel brands and content and service offerings.

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