UBS inks pact with AIG for commodity index biz
Agencies: New York, Jan 19 2009, 18:28 IST
Financial services major UBS Investment Bank said it has entered into an agreement with crises-ridden insurance major American International Group to acquire its commodity index business for 150 million dollar.
The Swiss bank said in a statement that it has entered into a binding agreement to purchase the commodity index business of AIG Financial Products Corp, including AIG's rights to the DJ-AIG Commodity Index.
The transaction is expected to close by May, 2009.
UBS said it would pay 15 million dollar for AIG's product platform of commodity index swaps and funded notes based on the benchmark Dow Jones-AIG Commodity Index (DJ-AIGCI).
Besides, the deal would be followed by additional payments of up to 135 million dollar over the following 18 months based upon future earnings of the purchased business.
The deal is subject to regulatory and other conditions, it added.
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