Cevian, the Swedish company, has entered the ranks of the ten largest UBS shareholders. The investor claims to have invested 1.2 billion euros in shares of the Swiss bank, now holding a capital share of 1.3%. Cevian praises UBS's potential as a global wealth management bank, which is currently valued on the stock market like a regular financial institution. Lars Förberg, a partner at Cevian based in Zurich, is already discussing a target price of 50 Swiss francs – double the current UBS stock price. Förberg highly commends the UBS management and suggests that the Swiss bank deserves the same valuation as Morgan Stanley.

These are flattering words, but UBS itself, but especially financial regulatory authorities at home and abroad, should not be swayed by them. Activist investors like Cevian typically have a very one-sided approach to their targets. With assets of around 150 billion SEK or approximately 12 billion CHF, Cevian is considered Europe's largest activist fund.

Typically, shareholder activists seek to simplify corporate structures and demand measures primarily beneficial to the stock price. This includes cost-cutting programs and, of course, generous dividend payments or stock buybacks. In doing so, shareholder activists may, under certain circumstances, accept that the stability of companies is weakened.

In pursuit of high returns, activist shareholders are also known to employ aggressive methods. They mobilize the broader market with targeted public relations measures, strengthening their credibility as market influencers. Activist investors also occasionally resort to discrediting their opponents through covert campaigns, further establishing their dominance. Cevian is no exception in this regard.

Being aware that such methods can pose risks for a systemically important bank and become problematic from a point of view of regulatory authorities, Cevian indicates a preference for working behind the scenes. They explicitly state that, at present, there is no intention to pursue a seat on the board. However, this stance could quickly change if the current UBS leading figures, Sergio Ermotti and Chairman Colm Kelleher, were to fall out of favor with Cevian or leave the bank. Cevian becoming a major UBS shareholder is a nightmare and a warning sign for FINMA and the National Bank.