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UBS banker Robin Budenberg is likely to take over as chief executive of UK Financial Investments (UKFI), the body that holds Britain's stakes in several banks, the Financial Times said on Tuesday.
UKFI declined to comment.
The Financial Times said British Finance Minister Alistair Darling could decide as early as Wednesday on whether to approve Budenberg's appointment to take over the agency, which was created to manage the government's banking stakes.
The newspaper, citing an unnamed source close to the matter, said Budenberg could be hired on terms that were "acceptable" to the government.
Sky News, citing unnamed sources, said Budenberg had emerged as the leading candidate for the post.
If confirmed, Budenberg would replace UKFI's current CEO, John Kingman, who has planned to step down.