UBS settles dispute
UBS has settled a court case against the private equity owners of Tank & Rast, a German infrastructure group, over their refusal to allow the Swiss bank to sell debt used in the buyout of the group to competitors.
The case was brought against UK buyout group Terra Firma and RReef, an alternatives arm of Deutsche Bank in June. The pair acquired Tank & Rast for €1bn ($1.4bn) in 2005.
The firms allegedly withheld consent for UBS and France's Société Générale to syndicate debt used in the buyout to Tank & Rast’s competitors Macquarie and IIF Int’l Debt Investments.
A UBS spokeswoman said: “Commercial terms have been reached subject to documentation.” The case went to court today. Financial News reported two weeks ago the dispute was likely to settle.
It is unclear if Société Générale, which launched its own case, will settle. The bank declined to comment.
RReef declined to comment. Terra Firma and Tank & Rast did not return calls.
UBS and Société Générale were two of four banks holding a €200m ($285m) tranche of Tank & Rast debt. The dispute hinged on whether it was reasonable to block the sale.
It is the second time Terra Firma has settled a dispute this year, after reaching an agreement with French bank Natixis over the syndication of loans to UK rental business Boxclever, which defaulted in 2003.
del.icio.us
Digg
Newsvine
reddit
StumbleUpon
