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UBS can sell a part of its shares to the Chinese bank
26 November 2007On results of III quarter 2007 the largest in Switzerland Investment bank UBS has written off actives for the sum of 3,4 billion dollars. Such succession of events became full unexpectedness for investors, who could not even assume, that the bank will have so greater losses.
In this connection the management of bank has seriously reflected on sale of a part of bank’s shares to the foreign company, and, most likely, the buyer will appear one of the Chinese banks, which has recently start to play the increasing role in world economic.
MF Global Securities’ analysts mark that chances of China are the highest: they have means, and they want to get some experience and, most likely, ICBC, instead of Bank of China, as the last one already is present in the world market, will apply for UBS.
However, experts mark, that China will, most likely, get only small part of shares - full merge of UBS by the Chinese or any other foreign bank is improbable, as Swiss bank plays the leading role in national economy. And despite of UBS’ recent losses, its shares will all the same remain expensive for the potential buyer: according to economists, now market cost of bank makes nearby 90,6 billion dollars.
Nowadays UBS and Goldman Sachs are unique western banks, which have a broker license in China.
Let’s remind, that pure losses of Swiss bank UBS AG have made 830 million Swiss francs (495 million euro) in comparison with net profit at a rate of 2,2 billion Swiss francs (1,31 billion euro), received for the similar period of the last year.
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