* To shed 15-18 pct of combined staff of some 5,700
* Targets combined cost-income ratio of about 70 pct
* Baer AuM rise to 184 bln at end August
* Sees deal closing by Q1 2013
(Adds details, background)
ZURICH, Oct 9 (Reuters) - Swiss private bank Julius Baer
will cut up to around 1,000 jobs as a result of itspurchase of part of Bank of America Merrill Lynch'swealth management business.
Baer said it planned a "significant reduction of former Bankof America corporate overhead" as well as cuts to the middle andback office functions of the combined group, reducing thecombined staff of approximately 5,700 by 15-18 percent.
Baer, which is presenting details of the acquisition toanalysts and investors in London later on Tuesday, also reportedthat its assets under management (AuM) rose to 184 billion Swissfrancs ($197.11 billion) at the end of August from 179 billionat the end of June.
The bank said the increase resulted from net new moneyinflows close to the top end of its medium term target range, apositive market performance and a positive currency impact,mainly due to the strengthening of the dollar.
The gross margin was slightly lower than the 98 basis pointsreported for the first six months and the cost income ratioslightly higher due to a small contraction in client activityover the summer.
Julius Baer is acquiring Merrill Lynch's wealth managementbusiness outside of the United States and Japan to expand infast-growing emerging markets.
Baer launched a rights issue on Monday to help pay for thedeal, seeking to raise 492 million francs. Shareholderopposition forced it to cut the size of the rights issue from aninitially planned 750 million francs. .
Baer said it expected the deal to close in the first quarterof 2013 and for about 80 percent of the total assets to beacquired to be reported at Julius Baer by the end of 2013.
It has said the deal should add 57-72 billion francs inassets, although the actual amount transferred could vary due toclient attrition and market performance during the integration.
Baer said the planned cost cuts should lead to a impliedcost-income ratio of about 70 percent and a pre-tax profitmargin of about 25 basis points for the acquired business onJulius Baer's platform in 2015.
It said the transaction would be at least earnings per shareneutral in 2014 and contribute 15 percent to EPS in 2015.
($1 = 0.9335 Swiss francs)
(Reporting by Emma Thomasson; Editing by David Cowell)
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