UBS resolves dispute over Jefferies' banker hires

PHILADELPHIA, July 14 (Reuters) - UBS AG (UBSN.VX) (UBS.N) said on Tuesday it has "amicably resolved" a dispute with Jefferies Group Inc (JEF.N) over the smaller firm's hiring of three dozen UBS employees, including the bulk of its healthcare investment banking team.

UBS said a lawsuit and arbitration have been withdrawn and a temporary restraining order vacated, but it declined to provide additional details. Jefferies was not immediately available for comment.

Last month, Jefferies hired away three dozen UBS employees, including nearly all of its healthcare investment bankers, in what the Swiss bank had called a "massive, premeditated raid."

The employees in UBS's healthcare group and equity capital markets left in a "mass resignation" between June 17 and June 21, UBS said in an arbitration claim filed with the Financial Industry Regulatory Authority, dated June 22.

UBS accused two senior healthcare bankers -- group head Benjamin Lorello and Managing Director Sage Kelly -- of "surreptitiously planning" the move with Jefferies.

UBS had received a temporary restraining order against Jefferies, Lorello and Kelly to enforce its employment contract, according to a New York court order.

The order, among other things, prevented the bankers from starting work at Jefferies during their 30-day notice period. It also restrained Jefferies from hiring or soliciting for a job any other UBS investment bank employee until July 20.

Since 2005, the UBS healthcare group has closed more than $567 billion of transactions, bringing in more than $1 billion of revenue. UBS had sought damages and other relief.

The mass exit was the latest in a series of departures of investment bankers from UBS, which has been hit hard by the financial crisis and has had to cut bonuses, although the Swiss bank has also hired some bankers in the past few months. (Reporting by Jessica Hall; Editing by Steve Orlofsky) (For more M&A news and our DealZone blog, go to here)