Swiss bank UBS has offered to pay $122m (€101m) in cash and stock to buy the 50% of UBS Bunting, its Canadian institutional securities subsidiary, it does not already own.

The offer could increase by $24.8m depending on Bunting's performance in 2006 and 2007. Graeme Harris, a spokesman for UBS in Canada, said Bunting has been performing well and had its best performing year in 2005.