In December 2018, Swedish activist investor Cevian Capital took a 2.3% stake in Nordea, the Nordic region’s largest bank. Cevian has since acquired an additional 84 million shares in Nordea, bringing its stake up to 4.3% and making it the second-largest shareholder in the bank, reports Dagens Industri.
With Nordea trading at a discount, Cevian co-founder Christer Gardell does not rule out the possibility of further investment.
However, “profitability has to rise substantially. This calls for increased revenue, higher cost efficiency and better use of capital. The implementation must take place at the highest possible pace and without unnecessary time delay,” Mr Gardell tells the business daily.
Seeing no reason why Nordea cannot achieve a return of equity of 12-14%, in line with the bank’s competitors, Cevian “expects” Nordea to take steps in this direction in 2020.
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