It also plans to raise another 200 million francs in hybrid bonds. The stock was down 3.4 percent, bucking a 0.3 percent rise in the Stoxx Europe 600 banking sector index.īaer said that while it has 530 million francs in cash to help fund the deal it also intends to raise 750 million francs in a rights issue and in addition will grant Bank of America of 240 million francs worth of shares, making the Charlotte, N.C.-based bank a 3 percent shareholder. The acquisition, the latest in a string of purchases for deal-hungry Baer, is the bank's most assertive move since it bought Ehinger Armand von Ernst, Ferrier Lullin & Cie, BDL Banco di Lugano and asset manager GAM for 5.6 billion francs from UBS in 2005.īut the cost of the deal including the new capital requirements, was taken badly by investors, who sent the shares sharply lower in early trading. Swiss private bank Julius Baer is to buy Bank of America's Merrill Lynch private bank outside the United States, paying 860 million Swiss francs ($882 million) to boost its assets under management by 40 percent and backing the deal with plans to raise 1.19 billion francs in new capital. Home > Blog > Markets commentary > Julius Baer Buys Merrill Lynch Private Bank Assets
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