UBS shareholder pushes for Swiss exit

UBS, a top-10 bank, is facing pressure from its largest shareholder, Artisan Partners, to leave Switzerland, according to a recent report. The financial firm has expressed concerns that the bank may struggle to compete with US rivals if it needs to raise new capital due to a proposed Swiss law. Artisan Partners believes that UBS would lose approximately 36 billion in market capitalization if it were to comply with the capital raise requirement.

The activist group has a history of pushing for changes at other companies, including Danone and Southwest Airlines. UBS has acknowledged the challenges posed by the Swiss law, comparing it to "two black eyes and a broken nose," but maintains that its objective is to continue operating successfully as a global bank from Switzerland.

Artisan Partners is not the only activist group pushing for a change; Cevian, another activist fund, supported the idea of UBS redomiciling elsewhere a year ago. Swiss newspaper Blick reported that several banks have shown interest in a potential merger, which could serve as a route for UBS to exit Switzerland. UBS' potential exit strategy is a topic of interest, with Reuters Breakingviews providing a breakdown of how such an exit might occur.