Italian Banca Profilo has placed a binding offer to core shareholders of Geneva-based private bank Societe Bancarie Privee to buy a stake of 60.25 per cent of the capital paying SFr82.5 million in cash.

Under the terms of the acquisition Banca Profilo receives warrants that, if exercised, will give the right to buy an extra 10 per cent of the capital.

The acquisition which is expected to be completed by 31 October 2007, was announced on 25 May following the completion of due diligence started on 19 March this year.

According to Sandro Capotosti, chairman of Banca Profilo, this acquisition provides Banca Profilo with “a great opportunity to increase their assets under management and to strengthen its presence in the healthy Swiss private banking market”.

On the other hand the agreement fulfils the Societe Bancarie Privee’s obligation to choose a buyer for the equity stake, owned by one of its core shareholders, before the October 2007 deadline fixed by the Swiss authorities. In fact, the Swiss Federal Banking Commission threatened to revoke SBP’s licence following an investigation which found one of its core shareholders guilty of conflict of interest.

SBP specialises in the management of private and institutional assets and reported a total of SFr1.5 billion under management at the end of 2005.

Banca Profilo is an investment bank listed in the Italian Stock Exchange, focusing on the investment banking, private banking and capital markets.