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UBS AG says acquisition plans for India's Standard Chartered Bank dropped

UBS AG says acquisition plans for India's Standard Chartered Bank dropped

UBS AG, shaken by the U.S. subprime crisis, said Friday it would drop its plans for acquiring India's Standard Chartered Bank.
Switzerland's largest bank said that, after a sale and purchase agreement made last year had expired, a decision was reached not to pursue further negotiations on the deal.
UBS originally had planned a complete take over of both Standard Chartered Asset Management Company Private Ltd. and Standard Chartered Trustee Company Private Ltd. for an expected amount of 147 million Swiss francs (US$128 million; euro88.2 million).
"Any costs accruing to UBS through abandonment of the planned transaction will be negligible and will have no material impact on UBS's earnings," UBS said in a statement.
UBS said it remained committed to the Indian market and the Asian Pacific region, and would continue with a strategic alliance set up in April with Standard Chartered Bank for fund distribution in Asia.
Shares in UBS closed down 0.4 percent at 52.40 Swiss francs (US$45.64; euro31.44) in Zurich trading Friday.
The Swiss bank, which has been struggling with the impact of the subprime crises in the United States, has made 16 billion Swiss francs (US$14 billion; euro9.64 billion) in writedowns in the second half of 2007. Earlier this month it said it would post a fourth-quarter loss. It could not record a loss for the full year.


Updated : 2021-01-23 16:54 GMT+08:00