Tags: UBS | GE | Swiss | Lending

UBS Might Bid if GE Puts Swiss Lending Unit Up For Sale

Tuesday, 04 Dec 2012 10:25 AM

 

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
General Electric Co. wants to sell its Swiss consumer lending business and UBS AG is one of the possible bidders, in a deal that could be worth up to 1.5 billion Swiss francs ($1.6 billion), sources said.

Two people familiar with the matter told Reuters UBS was one of at least two parties who planned to submit bids for GE Money Bank in an auction process.

"GE wants to finalize the sale ... by the end of the first quarter," said one of the sources.

Spokespeople for UBS and GE Money Bank in Switzerland declined to comment.

The disposal is part of a plan by the U.S. conglomerate to shed non-core assets, such as a $1.5 billion stake in Thailand's fifth-largest lender Bank of Ayudhya.

If UBS were to buy the Swiss unit it would be the first deal of note for Switzerland's biggest bank since the financial crisis, when it ran up $50 billion in subprime losses and took a Swiss government bailout in 2008.

Its last major acquisition was of Brazilian investment bank Pactual for about $3.1 billion in 2006, but UBS was forced to sell the bank in 2009 to raise capital.

A UBS purchase of GE Money Bank would confirm the bank's stated desire to refocus on its home market and the core wealth management business as it scales back in investment banking.

In October, UBS said it had earmarked 1.5 billion francs for investment across all businesses over the next three years and said it would cut 10,000 jobs in a retreat from many fixed income activities.

Swiss consumer lending is estimated to be a 15 billion franc market in loan volume.

© 2014 Thomson/Reuters. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web

Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 

You May Also Like
Around the Web

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved