UBS in talks to buy BoC stake

UBS is negotiating to buy a stake in Bank of China, the country's third-largest lender, the Financial Times reported, citing banking sources. The move could enhance the Swiss group's chances of winning a key advisory mandate for BoC's US$3bn-US$4bn overseas listing. The news came after Citigroup was stripped of its underwriting mandate on the US$5bn listing of China Construction Bank (CCB) because of accusations it had reneged on a pledge to invest, and also last week's announcement by Bank of America that it will buy a 9% stake in CCB.