Exclusive: UBS Weighs Options For Sale of Credit Suisse's Swiss Unit

FRANKFURT/ZURICH, May 4 (Reuters) - UBS (UBSG.S) is reviewing options for Credit Suisse's (CSGN.S) Swiss bank, including potentially keeping the unit's investment banking operations while selling the rest, two people familiar with the matter told Reuters.

UBS is studying plans to sell the Swiss banking business of Credit Suisse in an initial public offering (IPO) after taking over its smaller rival, the people said, speaking on condition of anonymity.

The considerations are at an early stage as UBS is focused on completing that takeover and it may not make a final decision on whether to pursue an IPO for months, another person said.

UBS and Credit Suisse declined to comment.

UBS is racing to complete the state-backed rescue takeover of Credit Suisse that will create a banking giant overseeing more than $5 trillion in total invested assets.

The future of Credit Suisse's business in Switzerland is being closely watched as one of UBS's key strategic decisions. A combination with UBS would create a dominant position in the Swiss loan market, according to analysts at Jefferies. The merger has drawn concern from lawmakers that it could lead to reduced competition.

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