Julius Baer is considering selling some assets as part of a plan to remain independent, the Wall Street Journal reported, citing a person familiar with the matter. The newspaper said the potential move was sparked by UBS' plans to divest its 20.7% stake in Julius Baer.
The prospect of UBS selling its stake has fuelled rumours the Swiss bank could become a takeover target, the paper said, citing analysts.
One way Julius Baer could preserve its independence would be to buy back a portion of the UBS AG stake, the Wall Street Journal reported, citing its source. Currently, the Swiss bank has 500 million sfr of reserves available for stock repurchases. The newspaper said the bank could raise additional capital by selling its US asset-management business.
The Swiss private bank declined to comment on potential asset sales. UBS is currently looking for options to sell its stake in Julius Baer and said it expects proceeds from a disposal would be more than 4.1 billion sfr.