(Adds details from memo, context in paragraph 4-5)

LONDON, Jan 28 (Reuters) - HSBC ( HSBC ) is preparing to

wind down its M&A and equity capital markets businesses in

Europe, the UK and the Americas as part of a major shake-up of

its investment banking operations, a memo the bank sent staff

showed on Tuesday.

"...our intention is to move to a more competitive,

scalable, financing-led model," Michael Roberts, CEO HSBC Bank

said in the memo.

"We will retain more focused M&A and Equity Capital Markets

capabilities in Asia and the Middle East, and we will look to

wind-down those activities in Europe, the UK and the Americas,"

Roberts said in a memo sent to employees seen by Reuters.

CEO Georges Elhedery is working through a major

cost-cutting

exercise

at Europe's largest bank that was launched shortly after

starting in the role in September.

The sweeping overhaul is aimed at streamlining costs,

tightening focus and improving accountability of performance,

but analysts had raised questions about the scale of savings

Elhedery could achieve and what parts of the business would be

impacted.

The Asia-focused bank will keep is debt capital markets,

leveraged acquisition finance operations globally, Roberts told

staff in the memo, which acknowledged how unsettling the news

would be for HSBC ( HSBC ) bankers working in those regions who advise on

dealmaking and corporate equity raising firms, such as through

initial public offerings.

"I've lost count of the number of times HSBC ( HSBC ) has been in

and out of ECM in the UK. It never seems to succeed," Shore

Capital analyst Gary Greenwood told Reuters.

"At the end of the day, these are expensive businesses

to run and if you are not winning the business and generating

the fees then its easy to lose money."

HSBC ( HSBC ) shares were little changed after the news, last

down 0.5% at 820 pence, valuing the bank at about 147 billion

pounds ($182.9 billion).

($1 = 0.8037 pounds)