Activist investor Luqman Arnold (left), UBS’s former CEO and one of its top investors, threw a big right hook in his fight for big changes at the bank… and promptly pulled a punch. Speaking in an interview on CNBC television, Arnold said he had not “technically called for a breakup” of the bank, in which his 0.7 percent stake makes him one of the top 10 shareholders, but that the group could increase its value through restructuring. The beleaguered behemoth, the hardest-hit worldwide from the subprime crisis, has rejected calls for sweeping changes, saying its dual focus on investment banking and wealth management is sound. Arnold was ousted as CEO in 2001 after a dispute over strategy with Chairman Marcel Ospel, who resigned this week due to the subprime debacle.

John Reed, one of the masterminds behind the $166 billion merger that created Citigroup in 1998, doesn’t feel so brilliant these days. He told the Financial Times that the merger was a mistake that failed to benefit the company’s investors. Reed worked on the pact with Sandy Weill. “The specific merger transaction clearly has to be seen as a mistake,” Reed said. In January, Citi announced plans to raise $14.5 billion, slash its dividend and cut 4,200 jobs to shore up its balance sheet after a writedown on mortgages led to a $9.83 billion quarterly loss.

THQ is looking at buying other video game developers, but the publisher of games like “Cars” and “Saints Row” can grow without making acquisitions, Chief Executive Brian Farrell told Reuters. “We are seeing some opportunities in the marketplace given the two transactions going on,” Farrell said in an interview. He was referring to the pending merger between Activision and the games unit of Vivendi, and Electronic Arts’ $2 billion offer for Take-Two Interactive Software. “It’s going to create some opportunities because we are actively looking at every developer, every license out there and with our size now we can be more aggressive than larger, slower firms,” Farrell said.

Deals of the day:

*Kazakh metals major ENRC said it had completed a purchase of a controlling stake in Russian ferrochrome producer Serov for $210 million, its first acquisition as a public company.
* U.S. semiconductor supplier Diodes said on Friday it had agreed to acquire Zetex in a deal that values its British rival at around 89.1 million pounds ($177 million).
* Australian contaminated soil treatment firm Virotec has received a 12 pence a share takeover approach from Hydrodec, sending its shares up 20 percent to 10.25p.
* French retailer Casino said it had cut its stake in property group Mercialys to 59.7 percent from 61.5 percent for tax reasons. Casino said it had reduced its holding at a price per share of 27.75 euros or 37.7 million euros ($58.91 million) in total.
* Irish healthcare services company United Drug said it had bought two British companies for a total maximum price of 14.15 million pounds ($28.11 million).
* Indian financial services firm Religare Enterprises said it would buy London-based broking firm Hichens, Harrison & Co for 55.5 million pounds or 285 pence per share.
* Jindal Drilling & Industries said it bought 49 percent in Singapore-based Virtue Drilling for 400 million rupees.
* Software firm ICSA (India) Ltd said the Government of Singapore has picked up about a 5 percent stake in it.
* Vivo, the Brazilian joint venture of Spain’s Telefonica and Portugal Telecom, is to launch a full takeover offer for Telemig Celular after completing the purchase of 53.9 percent of the Brazilian firm.