UBS is tightening its belt by more than a few notches: 5,500 jobs slashed, on top of 1,500 already completed, representing an 18 percent headcount reduction from mid-2007. Like a dieter throwing out all the Ring-Dings from the pantry, the bank is also selling a $15 billion portfolio of subprime loans to BlackRock Inc. Hopeful CEO Marcel Rohner predicted that the end of the mortgage crisis is in sight.

The looming presence of Deutsche Telekom seems to have lit a fire under Sprint Nextel, which is reportedly considering a spin-off or sale of its lesser half. Nextel was acquired in a disastrous $35 billion deal, already subject to a massive fourth-quarter writedown that produced a $29.5 billion loss (yes, that’s billion with a ‘B’). A source close to Deutsche Telekom told Reuters the company had been looking at Sprint ever since the writedown. The Wall Street Journal reported that a company founded by Nextel founder Morgan O’Brien is trying to assemble a consortium of investors to re-acquire Nextel.

You may be done with Microhoo, but Microhoo isn’t done with you. Jerry Yang told Reuters that Yahoo is still open to further talks with Microsoft and expressed “mixed feelings” about events at the weekend, when talks broke down. Investors’ feelings weren’t so mixed — they sent Yahoo shares down 15 percent. His willingness to listen produced a small bump in Yahoo shares in European trading on Tuesday.

More Deals: 

** French bank Credit Agricole said it had abandoned a plan to bid for Italy’s Banca delle Marche, leaving Banca Popolare dell’Emilia Romagna in the frame. Agricole’s Italian unit Cariparma had been attempting to buy a majority stake of 52 percent in Banca delle Marche with an offer of 1.7 billion euros ($2.63 billion), according to the charitable foundation that is selling the holding.

** Advertising group WPP Plc has urged Taylor Nelson Sofres to engage in talks over a possible offer. British-based Taylor Nelson said it had rejected a 230 pence a share, or 950 million pound ($1.9 billion) offer from WPP, saying it preferred to press ahead with talks on a nil-premium merger with Germany’s Gfk.

Picture: Rory Sabbatini of South Africa wears a unique belt buckle, REUTERS/Hans Deryk