Monday, March 19, 2007

ubs backing out of lbo madness

ubs is probably the most solid investmentbank out there. they generate close to 50% from their asset management the following report from bloomberg shows that they are willing to take less risk in the "lbo craze" that is going on right now.

bravo ubs. hatte aufgrund der starken position im asset management schon immer das gefühl das ubs die mit abstand solideste investmentbak ist. der nachfolgende bericht unterstreicht dieses und zeigt das die ubs anscheinend nicht gewillt ist jedes risiko (ganz im gegensatz zu goldman und co) einzugehen.

March 19 (Bloomberg) -- UBS AG, Europe's biggest bank by assets, risks falling behind rival investment banks in mergers and acquisitions with the imminent departure of Kenneth Moelis, its top-ranking dealmaker in the Americas.

The company may announce as early as today that Moelis, 48, is leaving as president of UBS Investment Bank, a person with knowledge of his plans said. His resignation would end a six-year effort to get Zurich-based UBS to finance more leveraged buyouts.

``He has succumbed to the ancient Swiss problem of wanting strong independent Americans to manage their investment-banking business but chafing at giving them the authority or resources to do so for fear of losing control,'' ...

UBS Chief Executive Officer Peter Wuffli and Huw Jenkins, head of the investment bank and Moelis's boss, have trailed competitors in lending to buyouts even after ending a financing freeze in Europe in 2004. Moelis helped UBS almost triple its share of U.S. mergers and acquisitions to 16 percent and pressured UBS to become more competitive in LBOs. .....

So far this year, UBS ranks 10th among LBO advisers after participating in 7.7 percent of announced deals by value, according to data compiled by Bloomberg. Goldman, the No. 1 M&A arranger for the past six years, is first, with 62 percent. Citigroup Inc., JPMorgan Chase & Co. and Credit Suisse Group, all commercial banks like UBS, each have more than 42 percent.

UBS didn't win a role in this year's $31 billion buyout of Dallas-based power producer TXU Corp. The purchasing group, led by Kohlberg Kravis Roberts & Co. and Texas Pacific, obtained financing commitments from all five of its financial advisers, Citigroup, Goldman, JPMorgan, Lehman Brothers Holdings Inc. and Morgan Stanley. ( when you read the details you may kow why ubs why ubs didn´t participate.../ wenn ihr euch die details des deals durchlest kann man erahnen warum ubs sich in diesem segment zurückhält )

Concern Over Leverage
Jenkins, 49, showed concern in November about the amount of debt employed in leveraged buyouts when he said it was ``reaching something near a top.'' He also ruled out joining competitors such as New York-based Goldman and Merrill Lynch & Co. as an equity investor in LBOs.

Last year, UBS still didn't rank among the top 20 leveraged- loan arrangers in Europe. In the U.S., it was 12th, behind securities firms such as New York-based Lehman and Bear Stearns Cos., Bloomberg data show.

Contrast With Equity
In contrast with equity offerings, where UBS jumped to second place last year from ninth in 2000, the bank's position in global takeovers was unchanged at seventh, Bloomberg data show...

here is the link to the ubs 2006 report

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Anonymous Anonymous said...


You should use a different background color for your paragraphs in english, german and outside quote.

This will make reading your blog more pleasant.

9:02 AM  
Blogger jmf said...


i know that it looks sometimes not very well structured.

it´s often a matter of time.

i hope that i can "improve" the reading over time.

thanks for the hint

1:22 AM  

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