There’s some pesky scuttlebutt afoot pairing up HSBC with much-beleaguered UBS. Just enough to push the stock of the latter up a sizable percentage over the last 24 hours. But even if the talk is true, is a juggernaut Swiss bank, the pride and joy of its fellow countrymen, likely to be so easily led?

Shares in UBS rose 4% at one point Tuesday, on rumours that HSBC was mulling over an $80bn bid for its Swiss rival.

The jury is out, however, about whether the rumour has any foundation. Reuters quotes an unnamed analyst, who described the speculation as 'scurrilous', suggesting that 'I doubt the Swiss would settle for that'. The Independent, on the other hand, quotes Evolution analyst Nick Brown, who said: 'HSBC should unquestionably be one of the best investment banking businesses, and they may be looking to UBS to do just that.....It's an interesting proposition'.

The New York Posts also reports Wednesday that UBS has hired Lazard to undertake a strategic review of its business, prompting speculation that the bank may be considering separating its wealth management business from its troubled investment banking division.

Another rumour doing the rounds on trading floors Tuesday was that Barclays was thinking of having a run at French bank Societe Generale. This rumour was quickly dismissed as nonsense by the market.

Talking of Barclays, the bank came out Wednesday and confirmed that it is to sell $8.9bn in shares to existing shareholders and a group of investors, including China Development Bank, Sumitomo Mitsui Financial Group, Qatar Investment Authority, and Temasek Holdings.

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