ZURICH, Oct 19 (Reuters) - Activist investor RBR Capital Advisors wants Credit Suisse to float its asset management business and investment bank, according to a presentation reviewed by Reuters.
The Swiss hedge fund went public this week with a campaign to break up Switzerland’s second-biggest bank into an investment bank, an asset management group and a wealth manager accommodating its retail and corporate banking operations.
In the presentation dated October 2017, RBR estimated a divided up Credit Suisse would be worth at least double the bank’s current market capitalisation of around 40 billion Swiss francs ($40.9 billion).
The fund sees potential valuations of Credit Suisse’s independent wealth management arm at 62.5 billion francs, the investment bank at 15.6 billion and the asset management business at 6.8 billion.
A spokesman for RBR declined to comment and said the fund will outline its strategy for Credit Suisse at the JP Morgan Robin Hood Investor Conference in New York on Friday.
Credit Suisse has said it welcomes the views of shareholders but its focus is on the implementation of its current strategy.
Credit Suisse is roughly two years into Chief Executive Tidjane Thiam’s three-year plan to focus on wealth management and rely less on investment banking.
A demand to float the asset management business has not previously been reported, nor had the individual valuation estimates of the three Credit Suisse businesses.
The Financial Times, which first reported the activist campaign on Monday, said RBR was seeking to float Credit Suisse’s investment bank.
RBR wants Credit Suisse to list the investment bank, which it dubs First Boston 2.0, in either New York or London, according to the presentation seen by Reuters. Credit Suisse took control of U.S. investment bank First Boston in 1988.
RBR, which is led by Rudolf Bohli, has taken a stake of only around 0.2 percent in Credit Suisse and faces a steep challenge to muster the backing needed to succeed in its campaign. ($1 = 0.9778 Swiss francs) (Editing by Rachel Armstrong/Keith Weir)