0301 GMT - IAG's bulls at UBS are untroubled by the latest blow to its bid for control of Western Australia state insurer RACI. Australia's competition regulator blocked IAG's second application for clearance of the acquisition. IAG will ask for permission one more time, but UBS analysts see upside risk to consensus EPS forecasts irrespective of the outcome. They tell clients in a note that they anticipate EPS accretion of between 5% and 10% if IAG gets hold of RACI. They think IAG would respond to failure with a A$750 million buyback that would be 1%-5% EPS accretive. UBS keeps a buy rating on the stock with a target price of 9.25 Australian dollars. Shares are down 0.9% at A$7.81.
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