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Bloomberg
Swedish activist investment firm Cevian Capital has built a 2.3 percent stake in Nordea Bank Abp in a move that may put pressure on the Nordic region’s largest bank to improve its revenue development and profitability.
Cevian’s comment that it “sees significant value potential in Nordea†and that it “will work with Nordea’s owners, board and management to realise this value potential without unnecessary time delay†indicates it’s in agreement with Nordea’s main owner, Sampo Oyj, on the direction in which the bank needs to be developed.
Cevian’s arrival on the scene could pressure the biggest Nordic bank to focus more on addressing its weak revenue development, Jefferies said last month after media speculation on Cevian building a stake, especially given Sampo’s recent comments over Nordea’s “disappointing†returns. The 2.3 percent stake makes Cevian Nordea’s fourth-largest shareholders and gives it clout to join the nomination committee, which proposes board members for the bank.
The nomination board welcomed Cevian, saying it’s “pleased to see Cevian sees value potential in Nordea.†Nordea has been lagging its peers on both profitability and share price.