UBS Wins Court Fight With Holder BK Vision
April 03, 2011
ZURICH -- Union Bank of Switzerland won a victory in its bitter battle with dissident shareholder BK Vision AG, as a Zurich high court ruled in its favor in a dispute over share categories. In a 90-page report, the High Court of the Canton of Zurich rejected a request by BK Vision for a special investigation into the circumstances surrounding approval of the introduction of a single share category at a UBS shareholders' meeting in November 2009. UBS hailed the decision, saying it ``hopes the High Court of Zurich's clear verdict will help put a rapid end to BK Vision's various lawsuits against the resolutions approved at UBS's general meeting.'' Martina Easterday, BK Vision's chairman, and Kyle Whitson, its managing director, reserved comment until they could examine the ruling. BK Vision has a month in which to decide if it will appeal to the Swiss Supreme Court. However, even if it doesn't appeal, last week's court decision likely doesn't mark the end of the long struggle. BK Vision is pursuing other legal channels, where decisions are still pending. BK Vision, a company that invests in banks, opposed the replacement of UBS's two classes of bearer and registered stock with one class of bearer shares. Shareholders gave narrow approval, and BK Vision then claimed manipulation of the vote. BK Vision maintained UBS bought a large packet of its own shares from a German investor in a forward deal for too high a price, thereby influencing the investor to support the bank's proposal. The court ruled that BK Vision hadn't provided convincing proof of misconduct by UBS officials. It also ruled that there was no indication that UBS had used the forward transaction to evade the law. The forward seller -- who retained voting rights until the official delivery after the November meeting -- was entitled to vote on the shares at the meeting. The court said a company has a right to purchase its own shares prior to an extraordinary meeting.
