UBS Purchase of Schwab Unit Welcomed

ZURICH - Analysts welcomed news reports that UBS AG (UBSN.VX) was set to buy Charles Schwab'sinstitutional research and trading unit for $265 million on Monday, saying it would fortify the bank's market activities.

But they downplayed the impact that a deal could have on UBS, saying it was small fry for world's seventh-largest bank by market value.

Cash-rich UBS, with a market capitalization of around $80 billion, hopes the acquisition will strengthen its stock-trading operations and produce better prices and market insights for institutional clients, the Wall Street Journal said on Monday, citing unidentified sources.