UBS, the world’s leading asset manager, has recently attracted the attention of Swedish investor Cevian. Cevian has taken a stake in UBS, believing it to be undervalued and fueling the bank’s ambitions for growth. However, this investment also poses risks due to Cevian’s reputation as an activist investor who often targets troubled companies.
According to reports, 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.
It remains to be seen how Cevian’s investment will impact UBS’s future plans and whether the bank will be able to successfully navigate the challenges and 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.