UBS today set the terms of its dividend after asking shareholders to accept stock in place of cash in February following balance sheet strains in the wake of hefty sub-prime writedowns. The Swiss bank is awaiting shareholder approval for a Sfr15bn (€9.4bn) rights issue this month.

UBS shareholders will be entitled to one new share for every 20 existing shares held instead of a cash dividend for last year. This is equivalent to a cash dividend of Sfr1.69 per share, based on the bank's closing share price of Sfr 33.72 on April 15, compared with a Sfr2.2 per share dividend in 2006.