Luqman Arnold advocates UBS break-up

by Gill Montia

Story link: Luqman Arnold advocates UBS break-up

UBS, the Swiss investment bank that in the first-quarter of this year wrote down £9.6 billion in losses related to the credit crunch, is facing pressure to break up the business.

Luqman Arnold, a former chairman of UBS who is also remembered for his attempts to acquire Northern Rock via his investment company Olivant, has launched a shareholder campaign to break-up the banking group.

Mr Arnold is opposed to UBS’s internal appointment of Peter Kurer to the role of executive chairman, following the resignation of Marcel Ospel, this week.

He also believes that the bank should restore its capital position by selling assets, asserting that the disposal of its fund management division and Brazilian and Australasian subsidiaries would not damage the group’s core business.

UBS has confirmed that it has received a letter from Olivant and will be responding in due course.

Olivant now holds a 0.7% stake in UBS, which it has acquired relatively recently.