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Warburg Dillon Read sale?
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October 8, 1998: 6:07 a.m. ET
Report: UBS may be reviewing future of investment banking division
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LONDON (CNNfn) - Swiss bank UBS is considering the future of investment banking division Warburg Dillon Read, according to press reports Thursday.
The Financial Times reports Thursday that UBS executives, who had been examining ways of better integrating Warburg Dillon Read into the rest of the bank, have widened their investigation.
It's said the options being examined include the disposal or partial sale of the unit.
UBS shares have been among the worst performers in Europe recently, following revelations of its exposure to collapsed hedge fund LTCM.
The debacle cost UBS 950 million francs ($425 million), and led to the resignation of chairman Mathis Cabiallavetta and several other top executives.
The Financial Times reports the review of WDR's future could be finished by the first quarter of 1999.
Options for the bank are said to include: selling the division entirely or bringing in another partner. WDR could also be sold to its management, or floated as an independent player.
UBS told Reuters Thursday that it "is still committed to four divisions including Warburg Dillon Read. Dealers in Zurich said a sale of WDR looked unlikely.
In early morning trade UBS shares were down 0.5 francs at 304, roughly in line with the decline in the Swiss market.
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