UBS, the world’s leading asset manager, has recently received a significant investment from Swedish activist investor Cevian. This investment has fueled UBS’s growth ambitions, but also poses risks due to Cevian’s reputation for targeting troubled companies.
Cevian has invested 1.2 billion euros in UBS, making them one of the 15 largest owners of the Swiss bank. While Cevian is not seeking a seat on the board of directors at UBS, they believe that the bank’s shares are undervalued compared to its American competitors, such as Morgan Stanley.
UBS has ambitious plans for growth, particularly in the US market, where they aim to become a significant player in wealth management and investment banking. The recent merger with Credit Suisse has provided UBS with the opportunity to expand their market position and become a global champion in the industry.
However, there are concerns about UBS’s investment banking ambitions, especially in light of past losses due to risky investments. The market values asset managers more highly than investment banks, which may influence UBS’s strategic decisions moving forward.
As a result of this investment, Cevian will have a say in how UBS is managed and what direction it takes. However, it remains to be seen whether this will impact their future plans and ability to navigate risks associated with their growth ambitions. As the financial landscape continues to evolve, UBS will need to carefully consider their next steps in order to achieve their goals and satisfy their investors.
