Bloomberg reports that the stock may rise as the New York-based lender reduces the amount of money it holds against distressed assets in the Citi Holdings division while losses from the unit also decline, Hawken wrote in a note to clients, upgrading his rating to buy from neutral. Shares could increase to $62 within a year, Hawken said.
In the meantime, Bloomberg also reports that HSH Nordbank, the German regional lender, has settled a lawsuit it filed against UBS over losses on a collateralized debt obligation linked to the U.S. subprime-mortgage market.
HSH Nordbank, based in Hamburg, sued UBS in February 2008 over losses on a CDO called North Street 2002-4. HSH Nordbank said in the suit that its predecessor, Landesbank Schleswig- Holstein, lost almost all of the $500m it invested in the CDO in March 2002.
The two sides have reached a settlement, the terms of which are confidential.
Finally, Reuters reports that UBS is in talks with Italy's Veneto Banca over the possible purchase of certain assets of hard-pressed asset manager Banca Intermobiliare, a source with direct knowledge of the situation told the news agency.
Veneto Banca, which owns 71% of Banca Intermobiliare, said in a statement it was looking at ways 'to extract more value from the private banking division of Banca Intermobiliare', and was considering involving third parties in the process.