Swedish investment firm Cevian has announced plans to invest in UBS, citing the bank’s undervaluation in the financial market. This move is seen as a boost to UBS’s ambitions but also comes with certain risks. The major bank now has a new major shareholder in the form of Cevian Capital, which has acquired a stake of 1.2 billion euros, making it one of the 15 largest owners of the only remaining major Swiss bank.
Cevian is known for its activist investing approach and has a reputation for influencing struggling companies’ management or structure to improve their business model and increase their share price. While there are no indications that Cevian plans to make significant changes at UBS, it shares the view of UBS leadership that the bank is undervalued compared to its American competitors such as Morgan Stanley.
UBS has experienced significant growth in its share price following its merger with Credit Suisse earlier this year. The bank aims to expand in the US market, particularly in wealth management and investment banking, which is supported by key figures within the organization. However, concerns remain about potential risks associated with increasing investment in US investment banking, particularly given past losses incurred by UBS and Credit Suisse in this area.
As UBS continues to pursue its ambitions in the financial market, major shareholders like Cevian will play a crucial role in shaping its future strategies and decisions while ensuring profitability over time and maintaining balance between investment banking and asset management.
