Harris denies plans to push for UBS break-up

NEW YORK, July 23 (Reuters) - Money manager Harris Associates LP denied on Monday a UK press report that suggested it may pressure Swiss bank UBS AG (UBSN.VX) to break up, saying it built up a $1 billion stake because it likes the bank.

"The purpose of this investment has nothing to do with being an active investor," David Herro, chief investment officer for Harris' international investments, said in an interview on Monday. "We think this is one of the premier asset managers in the world."

The Sunday Times of London reported that Chicago-based Harris had "secretly built a $1 billion stake" in UBS, which has "faced calls from investors and analysts to split its wealth management and investment banking divisions."

The paper did not directly say Harris was planning to pressure UBS to split itself up. But it did say "the break-up calls have gained support following the spectacular results of TCI, the London hedge fund, in agitating for the break-up of ABN Amro."

Herro said he does not believe UBS should split up. "We do feel the investment bank has a role in their business," said Herro. "It's complementary to their asset management business."

Harris Associates, which manages some $73 billion, holds about 14.7 million UBS shares as of March 31, according to a regulatory filing. Herro said the company started buying UBS stock in the past six months.

Herro gained fame as an activist in the UK when he successfully pressured for the ousting of the Saatchi brothers from the Saatchi & Saatchi advertising agency over a decade ago. But he said the activist move then was "by far the exception" and that the firm "is generally passive" in its investment approach. (Reporting by Dane Hamilton)