The founding family of Julius Baer Group is to cede control of the Swiss private bank as part of an effort to improve performance. However, it has so far prompted only takeover speculation, leading to a rise in the share price. UBS has been touted as a possible buyer of Julius Baer, after the giant Swiss bank bought Julius Baer’s North American private client business last year.
The Baer family are to cut their voting rights from 52 per cent to 18 per cent, which will bring their voting rights into line with the size of their shareholding. Raymond Baer, the group chairman, says Julius Baer is the first Swiss private bank to open its ownership “fully” to the public.
The move, which is symptomatic of the cost pressures now affecting the entire Swiss private banking industry, reckons the move will tempt buyers to attempt a takeover of the group, amid pressures which have sparked consolidation and cost cuts in the sector. However, the move could also free Baer to raise cash in the markets to act as a consolidator rather than a consolidatee in Switzerland and abroad.
Yesterday’s statement also revealed that Michael Baer, head of the group’s private banking business, was to quit after 12 years at the company. The departure was blamed on “differing views regarding the implementation of the private banking strategy.”