Controversial exchangeable from UOL as it banks UOB stake

Fierce competition and short-dated structure makes for another testing equity-linked deal out of Singapore.

United Overseas Land UOL moved to dispose of its stake in United Overseas Bank UOB after Singapore's close on Wednesday December 1 with an S$506.22 million $310.4 million exchangeable via Credit Suisse First Boston. Like so many Singaporean equity-linked deals before it, the deal could hardly be described as a roaring success and the lead ended up having to re-price the deal at a level, which is believed to have come through its fees.

At the heart of the problem was a structure that investors were always certain to dislike coupled with aggressive terms that had been exacerbated by the bidding contest banks went through to win the mandate. The structure...

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