ZURICH, Aug 21 (Reuters) - Shares in Swiss private bank Julius Baer BAER.VX rose 2.5percent on Tuesday after it said it will cut a rights issue to 500 million Swiss francs ($514.69 million)from an originally planned 750 million.
The bank said in a statement late on Monday that the board had decided to limit the rights issue due to shareholders’ feedback ahead of an extraordinary general meeting (EGM) to approve the issue of new equity capital set for Sept. 19. [ID:nL6E8JKE5Q]
Baer announced the rights issue a week ago to help fund its buy of Bank of America Merrill Lynch’s (BAC.N) overseas wealth-management business, but investors balked at the total cost of the deal, sending its shares sharply down. [ID:nL6E8JD0WP]
The original plan for a 750 million francs rights issue had included 250 million to fund more acquisitions, which Baer is now dropping.
Baer shares were up 2.5 percent at 32.15 francs at 0703 GMT compared with a 0.6 percent firmer European banking sector .SX7P.
($1 = 0.9715 Swiss francs)
(Reporting by Emma Thomasson)
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