Cevian Capital has placed a bullish bet on UBS Group AG (NYSE:UBS) following its takeover of Credit Suisse earlier this year.
Citing UBS’s “significant value potential”, Cevian said on Tuesday that it had built a 1.2% stake in the Swiss bank, worth some €1.2 billion (£1 billion).
“The board and management team are doing an excellent job integrating Credit Suisse,” Cevian managing partner Lars Forberg commented.
UBS bought Credit Suisse six months ago in a deal manufactured by Swiss authorities.
This followed the latter’s fall into trouble in the wake of Silicon Valley Bank’s collapse in the US.
Though UBS’s share price had been hit by the banking turmoil, the stock has since recovered and is up by over 45% so far this year.
“We have been impressed by their [management’s] commitment to further improve UBS,” Forberg added.
“Strengthened by the acquisition, UBS is the largest global wealth manager with unique market positions and financial strength.”
Cevian added UBS’s shares could be worth 50 Swiss francs, with the stock sitting at 25.87 Swiss francs on Tuesday morning.