Olivant increases stake in UBS

by Gill Montia

Story link: Olivant increases stake in UBS

Swiss investment bank, UBS, is receiving renewed interest from Olivant, its activist investor headed by former chief executive of the bank, Luqman Arnold.

This week Olivant raised its stake in the group to 2.5% (up from 1.1% earlier this year) and has continued its calls for a review of the bank’s strategy.

UBS has suffered greater losses in relation to the sub-prime mortgage crisis than any other financial institution, having written down $37 billion in mortgage related assets and other debt.

In April, its chairman Marcel Ospel, one of the most respected bankers in Europe, resigned. His departure followed first-quarter writedowns of £9.6 billion.

Days later Mr Arnold launched a shareholder campaign to break-up the group, advocating the disposal of its fund management division and Brazilian and Australasian subsidiaries.

Mr Arnold is also known to be opposed to the appointment of Peter Kurer as chairman, following the departure of Marcel Ospel.

He maintains that Mr Kurer is not qualified to do the job and that the appointment raises corporate governance issues.

Last week UBS successfully completed a $15.33 billion rights issue, with a take-up rate of 99.4%.