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UBS's newly created investor client services unit – inside its investment banking division – will include the firm's existing equities, foreign exchange and credit operations.
A good cut in the current capital gains levy to, say, 15% would do wonders for both existing equities and future equities!
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"The downside offers too much risk to existing equity holders," he said.
Providing existing equity investors and multinationals stay put, India can probably handle a debt-buyers' strike.
Shareholders were disappointed, however, because the new shares would dilute the value of existing equity.
The government's main role would be to force existing equity holders to offer the swaps to creditors.
Most likely, the existing equity and preferred shares would be wiped out, and the debt would effectively have been swapped into equity in the new structure.
However, even under a wide range of scenarios we find it difficult to envisage any meaningful value for the existing equity.
A bankruptcy filing for Chrysler would most likely wipe out existing equity stakeholders, notably Cerberus Capital Management, which took over the carmaker from Daimler in 2007.
Existing equity holders, including France Télécom, which owns $5 billion in preferred stock, would retain a small stake in the company once new shares were issued, they said.
This compensation consists of equity that Mr. Johnson accumulated over his 30-year career with Heinz and existing equity awards and contractual rights that were in place well before the announcement of the proposed merger.
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