UPDATE 1-J. Baer prices $530 mln rights issue

* Rights issue priced at 24.20 Swiss francs

* Shareholders to get 3 new shares for every 29 held

* Baer buys part of Merrill Lynch' s wealth managementbusiness

* Baer wants to boost profile in emerging markets(Adds details, background)

ZURICH, Oct 8 (Reuters) - Swiss private bank Julius Baer

has priced its rights issue at 24.20 Swiss francs pershare, raising 492 million francs ($529.97 million) as it seeksto finance its purchase of part of Bank of America MerrillLynch's wealth management business.

Julius Baer announced the acquisition of Merrill Lynch'swealth management business outside of the United States andJapan in August to expand in fast-growing emerging markets.

The subscription price for the new registered shares wasfixed at 24.20 francs per share, a discount of 26 percent toFriday's closing price of 32.56 francs. Shareholders willreceive 3 new shares for every 29 held.

The bank had initially announced a 750 million franc rightsissue to finance the deal, but cut the amount followingshareholders' feedback ahead of an extraordinary general meetingto approve the issue of new equity.

In September Swiss newspaper Sonntag said Baer planned tocut between 30 and 40 percent of the unit's 2,200 jobs in orderto contain its cost-income ratio.

A report earlier this month from specialist consultancyScorpio Partnership found the price paid by wealth managers tobuy up assets from rivals has halved in the last two years, withvaluations still falling as industry profit margins remain weak.

($1 = 0.9284 Swiss francs)

(Reporting by Catherine Bosley; Editing by Louise Heavens)

((catherine.bosley@thomsonreuters.com)(+41 58 306 7461))