EFG International shares surge on Julius Baer takeover rumors

By Louis Goss

Shares in EFG International jumped on Thursday as rumors swirled that Swiss private bank Julius Baer could be on the verge of taking over its Zurich headquartered rival for 4.5 billion Swiss francs ($5 billion).

Swiss news outlet Inside Paradeplatz reported "speculation" on Thursday that Switzerland's top private bank Julius Baer is closing in on a deal that would see it fully-acquire EFG International for 15 Swiss francs per share.

Shares in EFG International (CH:EFGN), listed on the SIX Swiss Stock Exchange, increased 6% on Thursday to 13 francs per share, having gained 25% in 2024 so far. Julius Baer (CH:BAER) shares were down 6% Thursday having gained 9% in the year-to-date.

EFG International and Julius Baer both declined to comment when contacted by MarketWatch.

Inside Paradeplatz, which is named in reference to the Zurich financial district, said the takeover would see EFG International's CEO Giorgio Pradelli replace Julius Baer's interim CEO Nic Dreckmann.

Dreckmann was appointed Julius Baer's interim CEO after his predecessor Philipp Rickenbacher stepped down in February following news the private bank suffered 586 million Swiss francs worth of losses on loans to Austrian real estate company Signa Holding.

Bloomberg reported in May that Julius Baer had held preliminary discussions with EFG International in exploring a potential acquisition that would create a combined firm with more than 500 billion francs in assets under management.

-Louis Goss

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06-06-24 0852ET

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