* UBS Global Asset Management chairman: unit not for sale

* Group Q3 results due Nov 3

ZURICH, Nov 2 (Reuters) - Switzerland's UBS(UBS.N: Quote, Profile, Research)(UBSN.VX: Quote, Profile, Research) does not plan to sell its fund management arm, the unit's chairman was reported as saying on Monday on the eve of the bank's third-quarter results.

"The business is not for sale," UBS Global Asset Management Chairman John Fraser told the Financial Times.

UBS held talks with U.S. fund manager BlackRock over a possible sale of the unit in 2008, the newspaper said, citing sources, but negotiations ended after the collapse of Lehman Brothers in September last year.

The paper also said UBS held talks with domestic rival Credit Suisse (CSGN.VX: Quote, Profile, Research) over a possible merger of all or some of the groups' asset management arms at the end of last year, but negotiations faltered at an early stage.

UBS is unlikely to have been able to capitalise on a market upswing in the third quarter and will show ongoing client outflows even as it reports a narrower quarterly net loss next week. [ID:nLT321132]

Analysts will be scanning third-quarter data for signs of recovery in the bank's core wealth management business, which has suffered outflows while UBS struggled to emerge from the subprime crisis and was also hit by a high-profile U.S. tax row. (Writing by Jason Rhodes; Editing by Hans Peters)