Meanwhile, the Julius Baer board has already approved the invitation and the agenda, which includes the reduction in rights offering, to be published for the Extraordinary General Meeting of its shareholders scheduled for September 19, 2012 after receiving feedback from shareholders.
Recently while agreeing to buy the non-US wealth management unit for about CHF1.47 billion, Julius Baer had said that it expects to fund the deal with existing excess capital, the issuance of new hybrid instruments, and new share capital.
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Earlier, the company had planned to raise CHF750 million in total in the proposed rights offering, including CHF250 million in new share capital for future strategic flexibility.
However, currently Julius Baer has decided to create only the authorized share capital partially required to fund the acquisition of Merrill Lynch’s International Wealth Management business.
Moreover, Bank of America will also issue CHF240 million in new equity as part of the funding.
It was in 2009 that Bank of America had acquired Merrill Lynch’s international wealth management business outside the US as part of its purchase of Merrill Lynch.
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