S+B rationale

All,

As was to be expected, the Swiss regulator has granted S+B a restructuring exemption, clearing the way for the rights issue, details of which we are expecting tomorrow morning.

As previously discussed with a number of you, we are not holding a position either way in S+B at this time. While the probability of triggering the CoC is certainly high, we do not like the upside/downside profile, even if the rights issue does succeed.

We are more interested in the shares (and potentially the surviving bonds) at around March of next year, when by a historical analysis the order book should bottom out - and shares may too. From eyeballing the upside, we thing there is a good chance of 40%-100% return in the following 12 months.

We will release an Ad-Hoc Analysis on the name shortly.

Wolfgang