Investors line up behind Arnold's call for radical change at UBS

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The Independent Online

Luqman Arnold, the former UBS president who is calling for a break-up of the Swiss bank, is already getting backing from investors unhappy with the board.

Ethos, a Swiss corporate governance foundation which owns a small stake and advises 79 other investors, and Profond, are both willing to back Arnold's call for a radical shake-up of the bank. Ethos has already told UBS that it wants a change in governance and new directors with more financial experience. Nine of the present directors have none.

Mr Arnold, who runs the Olivant investment vehicle, last week wrote a letter to deputy chairman Sergio Marchionne, with suggestions for change which include a possible sale of the investment bank. He says UBS, badly hit by the sub-crime crisis, has destroyed shareholder value by Sfr90bn (£45bn). He wants Mr Marchionne, the only senior non-executive, to become temporary chairman and set up a search for a Swiss chairman.