Top Bulls Reasons To Buy — Vote below!

Add a New Bulls Reason

Company: UBS AG (UBS)
Current price:
Headline: (100 character max)
Analysis:
Cancel
43%
agree
65 votes

  UBS and Investor begin talks to separate I-Bank

On April 21st 2008, UBS (UBS), with shares down more than 50% in the past 52-weeks, has finally begun talks with activist investor, and former UBS chief executive, Luqman Arnold. Mr. Arnold, currently heading up Olivant Advisers Ltd., a London based investment firm, believes that significant changes to both the structure of UBS and the director mix are necessary to boost shareholder value.

Mr. Arnold has been pushing UBS to split its investment bank from its private banking arm, in order to focus on core competencies and distance itself from the credit crisis – which has caused UBS to write-down more than $35 billion in bad debt. UBS has resisted the call for the separation of its investment bank arm thus far, but with increased shareholder pressure, thanks to Mr. Arnold, that may not last much longer.

In another sign of hope for shareholders, longtime Chairman Marcel Ospel was forced to resign after UBS rose to the top of the list on bad bet write-downs. Mr. Ospel was seen as a dominating force in the boardroom and his departure opens the door to significant changes.

UBS will not only separate its investment banking arm, but will move quickly to restore confidence in the company. Activist shareholders like Mr. Arnold are incredibly important instruments of change, and its to his credit on seeking solutions that boost shareholder value.[1]



  1. http://freundinvesting.com/2008/04/19/ubs-activist-investor-begin-talks/#more-59
(100 character max) Cancel
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki