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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 management business

* 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 per share, raising 492 million francs ($529.97 million) as it seeks to finance its purchase of part of Bank of America Merrill Lynch's wealth management business.

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

The subscription price for the new registered shares was fixed at 24.20 francs per share, a discount of 26 percent to Friday's closing price of 32.56 francs. Shareholders will receive 3 new shares for every 29 held.

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

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

A report earlier this month from specialist consultancy Scorpio Partnership found the price paid by wealth managers to buy up assets from rivals has halved in the last two years, with valuations 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))

Keywords: JULIUSBAER/