Julius Baer Up On Talk Of CHF21.7B Standard Chartered Bid
Shares in Julius Baer Holding rose Thursday amid rumors British bank Standard Chartered is preparing a bid, valuing the Swiss private bank at over 23 billion Swiss Francs ($21.7 billion).
The Zurich-based bank declined to comment on trader talk that Standard Chartered will bid CHF105 a share, and the British bank wasn't immediately available for comment. The talk was first reported by Marktpirat.com, an online commentary for Swiss equities.
Julius Baer shares rose sharply in early trading. At 0839 GMT, the stock was up 2.6%, or CHF2.10, at CHF83.30, bucking the Dow Jones Stoxx 600 bank index, which traded 0.9% lower.
The speculation comes hot on the heels of Standard Chartered Chief Executive Peter Sands' admission the bank is looking at deals to bolster its existing business.
Speaking on the sidelines of the bank's annual shareholder meeting, Sands said the bank wants to "get bigger and grow in all key markets."
Though takeover talk regularly flares up around Julius Baer, which is one of Switzerland's largest private banks, Standard Chartered was termed by analysts as a plausible bidder.
"It's entirely possible because they are interested in private banking, and have the financial means to do it," Peter Thorne, London-based analyst with independent brokerage Helvea, said. He rates Julius Baer at accumulate with a CHF104 target.
Julius Baer is expected Friday to release a first-quarter trading statement, which analysts say is likely to reinforce the bank's stability amid financial turmoil racking other banks.
Unlike larger competitors, Julius Baer has a modest trading arm and no investment banking activities. As a result of being largely untainted by the subprime fallout, the bank is expected to gain market share from rivals such as UBS.
- Katharina Bart, Dow Jones Newswires; +41 43 443 8043; katharina.bart@dowjones.com
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