Investment Bank

Merger and acquisitions

Merger and acquisition activity remained strong. In first quarter 2007, we advised globally on 108 transactions with a deal volume of USD 131 billion. Key deals in the quarter included:

– joint financial advisor and broker to Enel, Italy's largest power company, on the EUR 10.3 billion acquisition of a 24.9% stake in Endesa, Spain's largest electrical utility

– joint financial advisor to CNL Hotels & Resorts on its USD 6.6 billion sale to Morgan Stanley Real Estate and Ashford Hospitality Trust

– sole financial advisor to Hindalco Industries, India's largest non-ferrous metals company, on its USD 6 billion acquisition of Novelis, the world's leading producer of aluminum rolled products.

Equity underwriting

UBS global equity capital markets deal volumes were USD 13.5 billion in first quarter 2007, up 10% compared with the same period last year. Overall, quarterly volumes were up 7% compared with a year earlier, according to ­Dealogic. We bookran more deals than any other bank and had a 7.4% market share of the global primary equity ­products in the quarter. Key transactions in the quarter ­included:

– joint bookrunner on the CHF 1.7 billion follow-on offering in Swiss Re on behalf of General Electric

– joint bookrunner on the USD 790 million follow-on offering for Renewable Energy Corp, the world's largest producer of solar grade silicon for the solar energy industry

– joint bookrunner on the HKD 2.8 billion IPO for China Huiyuan Juice Group, one of the leading food and drink producers in China.

Fixed income underwriting

Primary issuance in the international bond markets in first quarter 2007 was up 20% on the same period last year. Investor demand outstripped supply during the quarter and the global sell-off of high-risk assets in late February led to investors favoring more highly rated debt, slowing the purchase of new issues. However, stability returned in the middle of March, when spreads improved and new issues experienced a recovery in demand. UBS had a strong start to the year, underwriting 66% more volume than in first quarter 2006 against the market's rise of 20%. Our market share of primary bond issuance increased to 4.7% in first quarter 2007, up from 4.1% in 2006. We lead managed 156 deals during the quarter including:

– joint bookrunner on a dual tranche EUR 2 billion hybrid capital transaction for Assicurazioni Generali, the Italian insurer and financial services company

– joint bookrunner on a EUR 3 billion dual tranche offering for GECC, the American financial services company

– joint lead arranger and underwriter of AUD 3.6 billion senior debt facilities and the AUD 600 million subordinated bridge facility in connection with the buyout of PBL Media, the newly established Australian media and entertainment company, in the largest ever leveraged buyout in Australia.