Cevian Capital becomes a major shareholder in UBS. The well-known Swedish investment firm is not known for just watching from the sidelines.
Cevian Capital has bought up 1.2 billion Euros worth of UBS shares, according to a media release from the company known for investing outside the stock market. The sum has been used to acquire around 1.3 percent of the major bank’s outstanding capital, the statement says.
The stake will be held in the future by the funds Cevian Capital II Master, Cevian Capital Partners, and Cevian Capital II Co-Investment.
Target Price of 50 Francs.
The Swedish financial investor has high hopes for its venture. Co-founder Lars Förbergin sees substantial value potential in UBS, the release says. «The board of directors and management team are doing an excellent job of integrating Credit Suisse,» he says.
Once the valuation gap with the world’s largest asset management bank, Morgan Stanley, is closed, the UBS stock will be worth 50 francs. The shares are currently trading at 25,35 francs after making strong gains this year.
Speculation Surrounding Credit Suisse
With the Cevian funds onboard, the bank now has a major shareholder who does not simply sit back and watch, but sometimes launches fierce attacks.
The company has made a name for itself as an activist investor, including in Switzerland with the companies ABB and Panalpina. Appropriately enough, Cevian was also briefly in talks as a potential buyer of Credit Suisse. UBS acquired the second-largest Swiss bank last March.
