UBS staffer reportedly leaked GM IPO info

Swiss bank UBS is no longer working on General Motors' initial public stock offering because a bank employee leaked information about the sale in an unauthorized e-mail, a person briefed on the matter said Wednesday.

GM disclosed the e-mail in a filing with the U.S. Securities and Exchange Commission. UBS had been listed as a proposed underwriter in GM's IPO until Nov. 3, when it was dropped without explanation.

The person, who did not want to be identified because the bank has not been publicly identified, declined to reveal the content of the e-mail or how widely it was distributed. GM's filing said the e-mail went to various institutional investors.

However, according to Reuters, a senior high-yield research analyst at UBS sent an e-mail discussing GM's valuation the night before the automaker filed terms for its $13-billion IPO, breaking an SEC rule about not disclosing information about IPOs aside from regulatory filings.

The automaker said the e-mail - which the source said went to about 150 investors and prompted the SEC subsequently to request a copy - "does not reflect our views."

Losing its underwriting slot could cause UBS to drop three spots to a No. 10 ranking in U.S. market IPO league tables, based on Thomson Reuters data for the year so far. League tables rank the amount of business banks have done and are used for bragging rights and marketing purposes.

UBS declined to comment.

If the e-mail did amount to a violation of the Securities Act, some investors in the GM IPO may have the right to seek refunds or damages.

Morgan Stanley, JPMorgan, Bank of America, Merrill Lynch and Citigroup Inc. are the lead underwriters on the offering, which is expected to be priced on Nov. 17 and trade on Nov. 18. There are 35 underwriters.

Separately, GM posted its third consecutive profitable quarter Wednesday and is on track to have its first full-year profit since 2004.

Bolstered by better sales and cost-cutting measures, the Detroit-based automaker earned $2 billion. Revenue rose 36 percent to $34.1 billion in the quarter. Earnings per share jumped $1.20, compared to a loss of 73 cents a share in the prior period.

The latest results reversed a $908-million loss, or 73 cents per share, in the year-ago third quarter, a short one for GM because it spent the first nine days in bankruptcy protection.

Going into the fourth quarter, GM said it will incur costs to launch new vehicles, such as the Chevrolet Volt and Cruze.