NY Post: UBS Eyes Wealth Management JV with Wachovia

(Reuters) – Swiss bank UBS AG has held preliminary talks with Wells Fargo & Co’s (WFC.N) Wachovia Securities about forging a joint venture of the pair’s North American wealth-management units, the New York Post reported.

It is unclear at what stage the discussions are in, or exactly what form a joint venture might take, the paper said on Tuesday citing sources.

One source told the paper a deal might never materialize.

If an agreement is reached, it could enable UBS to cut costs at its U.S. wealth-management unit, the paper said.

A UBS spokesman declined to comment. Wachovia Securities could not be immediately reached for comment.

Wachovia, which was hobbled by mortgage-related losses and write-downs last year, was scooped up by Wells Fargo on Jan. 1.

(Reporting by Ajay Kamalakaran in Bangalore; Editing by Jon Loades-Carter)