- Boris Collardi, CEO at Julius Baer
Swiss private bank Julius Baer is going to make up to 1,000 people redundant as a result of its purchase America Merrill Lynch's international wealth management units outside the U.S. The combined staff of around 5,700 is going to be reduced by 15-18 per cent, while the job cuts would largely hit the Bank of America unit. Julius Baer expects the acquisition will boost company's profit starting from 2015 by increasing earnings per share by 15 per cent.
"Julius Baer will have to work hard to quickly change the (takeover) target so it can generate these profits," said Kepler analyst Dirk Becker.
"There is no other transaction of this size out there in wealth management with such a high tilt toward growth markets," said Boris Collardi, CEO at Julius Baer. "It's a business with a strong momentum, at least until a few years ago. I think the business just needs momentum again."
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