European stocks posted mild gains Monday after Swiss bank UBS (NYSE:UBS) said it will write down its U.S. subprime assets by another $10 billion, will now post a loss for the fourth quarter, and said it raised $11.5 billion from two large investors to bolster its bottom line (full story). UBS shares rose 2.4%.
UBS Raises $11.5 Billion, Writes Down Another $10B
European stocks advanced for a fourth day, led by banks and construction companies, after UBS AG said it will shore up capital by selling stakes to investors and Lafarge SA announced plans to expand in the Middle East.
Lafarge SA agreed to buy the cement unit of Orascom Construction Industries for $12.9 billion, becoming the biggest producer in Egypt, Algeria and the United Arab Emirates.
Societe Generale SA, France's second-biggest bank by market value, will bail out its structured investment vehicle by taking on $4.3 billion of assets to avoid a fire sale.
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