The Wall Street Journal-20080117-A Pension Fund Pressures UBS

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A Pension Fund Pressures UBS

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ZURICH -- Pressure is mounting on UBS AG to defend its decision to exclude current shareholders from a planned capital increase, after big Swiss pension fund Profond asked the bank to issue the shares in a form that allows existing holders to buy them.

UBS, hard-hit by the U.S. subprime-mortgage crisis, said last month that it planned to sell a 9% stake to the Government of Singapore Investment Corp. as part of a move to strengthen capital.

The move is subject to approval from shareholders at an extraordinary general meeting on Feb. 27.