Round up - August 13

UBS splits units as it prepares for break-up

The Times

UBS has laid the groundwork for a break-up of the bank – splitting the bank into three independent divisions within the group by the end of next year.

Peter Kurer, the chairman, described only the bank's global wealth management business as core, sparking speculation that the investment bank and asset management divisions were to be dropped.

We need clarity on the influencing role of the PPF

Financial Times

Sir, Lombard quite rightly highlights the worrying rise in the deficits existing across UK defined benefit pension schemes ("Perfect storm hits pensions five years after last one", August 12), but we do need clarity on the influencing role of the Pension Protection Fund.

Food and fuel prices send inflation to new high as City fears interest rate increase

The Guardian

Government figures released yesterday showed a sharp increase in food and fuel prices which have pushed the annual inflation rate to a 16-year-high of 4.4pc last month.

Inflation rates are expected to hit 5pc in the autumn. Data from the Office for National Statistics showed a 0.6 point jump in the annual cost of living in July and said food and fuel prices were increasing at similar rates to that of the early 1980s.

Cinven acquires holding in debt investment boutique

Financial Times

Private equity group Cinven has acquired a stake in Indicus Advisors to diversify away from leveraged buyouts by expanding into credit markets. The deal will allow Cinven to follow a handful of European rivals that have also started investing in debt markets. The debt created by the credit crunch has attracted many private equity groups such as KKR, TPG Capital and Apollo Management to established credit arms, which are in many cases now their most active units.