Stags poised for B&B listing

Investment bank UBS acquired a three per cent stake in specialist rival Babcock & Brown at a 25¢ premium to the offer price being used in the initial public offering of B&B. UBS bought the stake of one of B&B’s cornerstone shareholders, Germany's HVB. A further tranche of HVB’s shares is also for sale under the IPO, but at the 25 cent premium to the original offer price of $5. That means the select few allocated stock at $5, mainly existing clients of B&B, are already looking at a stag profit.