Activist investor believes UBS will eventually split

Crack Split

Eric Knight, CEO of activist fund manager Knight Vinke, believes UBS will eventually follow his advice to split its wealth management business from its investment bank.

Reuters reports that speaking on the sidelines of the GAIM hedge fund conference in Monaco, Knight said he saw no reason to sell his firm's stake in UBS, despite the bank showing little interest in breaking up.

'There's no reason to sell out. I'm still highly convinced they will do it. It may take a bit of time, but they'll get there in the end', he said.

Knight believes UBS's wealth management business would thrive apart from its riskier investment bank, and took a roughly one percent stake last year to campaign for a split.

UBS, meanwhile, has said the two businesses work together closely, bringing benefits to both.

'Forget what UBS is saying and look at what it's doing', said Knight, referring to UBS's plan to create a new corporate structure to ensure it can be broken up more easily in a crisis.

To access the complete Reuters article hit the link below:

Knight Vinke sees UBS moving towards break up

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