Ireland's second-largest bank needs to raise 7.4 billion euros by the end of the year to meet a 7 percent core tier one capital threshold set by the country's financial regulator.
No one from Allied Irish or UBS was immediately available to comment.
The lender raised a third of the 7.4 billion euros last week through the sale of its Polish businesses to Spain's Santander and analysts expect it to generate around 2 billion euros from selling its UK operations and a 22 percent stake in U.S. bank M&T.
An announcement on the sale of the remaining overseas units is expected in the next few weeks.
Ireland's government has said it will increase its stake in Allied Irish from a current 19 percent shareholding if the bank fails to come up with private capital by the end of the year.
Even with the sell-off of its assets, AIB still faces the threat of majority state ownership after its balance sheet was shattered by its wide exposure to Ireland's property crash.
Allied Irish said in early August that it expected to tap the market with a placing and a rights issue in the fourth quarter.
Allied Irish is playing catch-up with rival Bank of Ireland , which has already replenished its capital to the tune of 3 billion euros via a placing, a rights issue, a debt for equity swap and the government converting part of its preference shares to ordinary equity.
(Reporting by Carmel Crimmins; Editing by David Holmes) ($1=.7641 Euro) Keywords: ALLIEDIRISHBANKS/UBS (carmel.crimmins@reuters.com; +35315001529; Reuters Messaging: carmel.crimmins.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
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