REUTERS - Swiss bank UBS UBSN.VX may have lost as much as $350 million due to Facebook Inc's (FB.O) flawed initial public offering and is preparing legal action against Nasdaq OMX (NDAQ.O), CNBC said on Friday, citing unidentified sources.
UBS confirmed it lost money due to the IPO on May 18 but would not comment on the amount other than to say it was "not material."
In a statement, UBS said, "We are continuing to consider avenues to recover our losses in this matter, but have not yet taken legal action."
Industry sources originally said the bank suffered $30 million in losses.
UBS was one of four major market makers in the Facebook deal, along with Citigroup's (C.N) Automated Trading Desk, Knight Capital KCG.N, and Citadel Securities. Until Friday, the total loss for the group was thought to be upward of $115 million.
The troubles began when technical glitches caused a 30 minute delay in the opening of Facebook's highly anticipated IPO, followed by a two-hour period during which the market makers, which facilitate trades for brokers, did not receive confirmations on orders.
Nasdaq said on Wednesday it will offer a total of $40 million in cash and rebates to clients harmed in the IPO.
Reporting By Edwin Chan, John McCrank, and Lauren LaCapra; editing by Kenneth Barry