Activist Investor Cevian Makes €1.2 Billion Investment in Swiss Bank UBS

Cevian's 1.3% stake in UBS positions them as a top investor, expressing optimism for value appreciation after the takeover of Credit Suisse.

Activist investor Cevian has made a significant move by acquiring a 1.3% stake, valued at €1.2 billion (CHF1.14 billion), in the Swiss bank UBS. This move has positioned the Swedish investment firm as one of the bank’s top ten largest investors. In a press release issued on Tuesday, Cevian expressed optimism about the potential for value appreciation at UBS following the takeover of Credit Suisse. Lars Förberg, co-founder of Cevian, commended the Board of Directors and the management team for their excellent job in integrating Credit Suisse. Since the takeover, UBS has emerged as the largest global asset manager with a unique market position and financial strength.

Förberg further highlighted the potential for UBS shares to increase in value, stating that if the valuation gap to the US bank Morgan Stanley is closed, UBS shares could be worth CHF50 ($57). This is a significant increase from the current share price, which closed at CHF25.35 on the stock exchange the previous evening. Notably, UBS shares have seen a remarkable 47% increase over the past year, reaching a multi-year high of CHF26.28 last Friday, a price point that has not been seen in over 15 years.

Cevian's acquisition of a stake in UBS and their positive outlook on the bank's potential for value appreciation following the Credit Suisse takeover reflect a strong show of confidence in UBS's future prospects.