ref="http://www.cityam.com/company/ubs">UBS yesterday rebuffed claims by activist investor Knight Vinke that it subsidises its investment bank, amid a longrunning campaign by Knight to have UBS hive off the unit.
Knight Vinke, founded by Eric Knight, has called on UBS to reveal the funding rate of the bank at its annual meeting this week, amid claims the bank is funded at a level below the market rate.
“In his reasoning, Knight fails to recognize that there are synergies between investment banking and asset management,” UBS spokesman Mark Hengel said. “These also include the fact that the bank can refinance cheaply as a group. That has nothing to do with subsidizing of investment banking.”
Knight says internal funding of the bank destroys shareholder value.
UBS is due to unveil quarterly results this morning.