Eric Knight, the activist investor who has been trying to persuade UBS to split off its investment bank from its wealth management business, has been indulging in some fantasy M&A.

In its latest salvo, his fund Knight Vinke claims the investment bank is benefiting from a huge funding subsidy from the group. Because investors value profits from the wealth management business more highly than those from the investment bank, Knight argues the subsidy is resulting in massive destruction of shareholder value.