UBS analyst note got firm removed from GM IPO-sources

* UBS analyst sent note to clients on GM valuation-sources

* Note lost UBS its spot underwriting GM’s IPO-sources

* UBS still in GM credit facility for $373 mln-source

By Clare Baldwin and Soyoung Kim

NEW YORK, Nov 4 (BestGrowthStock) – A Tuesday e-mail to clients
discussing General Motors’ valuation lost UBS AG (UBSN.VX: )
(UBS.N: ) its role underwriting the U.S. automaker’s initial
public offering, two sources familiar with the situation said
on Thursday.

The email, which was sent the night before GM filed terms
for its $13 billion initial public offering, came from a senior
high-yield research analyst at UBS, the sources said. The
analyst did not cover the auto sector, one source said.

The sources declined to be named because the information is
not public. UBS declined comment and declined to say whether
the analyst was still an employee.

The analyst note broke a U.S. Securities and Exchange
Commission rule about not disclosing information on IPOs aside
from regulatory filings and on the roadshow where GM executives
and bankers will court investors.

It was easier for GM to remove UBS from the underwriting
syndicate than try to explain to the SEC how it would address
the violation, one source said.

UBS was listed as an underwriter on the GM IPO as recently
as Oct. 29. In an updated filing on Nov. 3, UBS was no longer
listed.

UBS was one of 10 banks in August to commit up to $500
million each as part of a $5 billion credit line for GM. UBS
remains on the credit line, one source said.

Each of the banks’ commitments was reduced to $373 million
as GM added 12 more banks in emerging markets and other
countries including Industrial and Commercial Bank of China
(1398.HK: ), Commerzbank AG (CBKG.DE: ) and Canadian Imperial Bank
of Commerce (CIBC) (CM.TO: ).

GM on Wednesday finalized terms for an IPO worth about $13
billion that will repay a controversial taxpayer-funded bailout
and reduce the U.S. Treasury to a minority shareholder.
[ID:nN03133378]

Morgan Stanley (MS.N: ) (Read more about the money market today. ), JPMorgan (JPM.N: ), Bank of America
Merrill Lynch (BAC.N: ) and Citi (C.N: ) are the lead underwriters
on the offering. There are a total of 35 underwriters. The IPO
is expected to priced on Nov. 17 and trade on Nov. 18 sources
have said.

Details of the UBS analyst note were first reported by
Dealbreaker.
(Reporting by Clare Baldwin and Soyoung Kim. Editing by Robert
MacMillan)

UBS analyst note got firm removed from GM IPO-sources