Julius Baer says its assets under management will swell by 40% with the deal to 251 billion francs ($258.2 billion). About two-thirds of the assets it will acquire are domiciled in Asia, Latin America and the Middle East.
To fund the deal, Julius Baer will use a combination of cash on hand and proceeds from proposed capital raises, which includes bringing in Bank of America as a shareholder, according to the press release announcing the deal.
European investors did not appear to be impressed with the news. Shares in Julius Baer retreated as much as 6.1% early Monday on the Swiss bourse.
But on Wall St., shares of Bank of America were up about 1% to $7.82 in early trading. That is in a 52-week range of $4.92 to $10.10. Analysts had a mean price target on the shares of $9.30 before this announcement.