Sunday, 24 July 2016
Last updated 1 day ago
May 24 2013 | 12:40pm ET
A top UBS executive is set to meet with the activist hedge fund seeking the spinoff of its investment bank.
CFO Tom Naratil will meet with Knight Vinke Asset Management next week, The Wall Street Journal reports.
Knight Vinke in May argued that UBS' investment-bank should be spun-off from its Swiss banking and wealth management business. The hedge fund said it "questioned the merits" of keeping the businesses "under the same roof" and suggested that the investment bank's employees and management might be its best owners.
"The investment bank has delivered a good set of results for the first quarter of 2013 but nearly destroyed UBS in 2007-09," Knight Vinke wrote. "Investment banking is a very risky business and these risks pose a serious threat to UBS' wealth management and Swiss banking franchise."
Knight Vinke owns just under 1% of UBS.