M and A
Swiss Bank In Exclusive Talks To Buy BSI
The saga over the fate of BSI, a private bank operating in regions including Asia, took another turn late last week.
(This article first appeared last Friday in WealthBriefing, sister news service to this one, and is repeated here due to BSI and EFG's presence in Asia.)
Zurich-listed EFG International last week confirmed it is in exclusive talks with Brazil’s BTG Pactual about a potential acquisition of BSI, which BTG Pactual is looking to sell just a few weeks after having completed its purchase.
EFG said in a statement: “[EFG] has taken note of an online Ticino media report according to which EFG is in exclusive discussions with BTG Pactual in relation to a potential acquisition of BSI and that a decision is imminent. In accordance with SIX regulations, EFG confirms that it is in exclusive discussions with BTG Pactual regarding a potential acquisition of BSI. No decision has been made.” EFG made no further comment.
The saga of BSI has become, in the words of one individual working in private banking M&A who commented to this news service in Geneva last week, a “case study” in how wealth management acquisition deals can go astray. Last year, BTG Pactual bought BSI, a Switzerland-headquartered private bank with operations in regions such as Asia.
However, late last year, the arrest of BTG’s founder, André Esteves, in connection with a national corruption probe in Brazil meant that BTG Pactual was looking to sell assets to raise capital, and urgently. As a result, speculation immediately began about BSI’s fate. A number of banks have been touted as potential suitors.
Among other recent developments, Yves Henri Bonzon, who last year was due to join BSI after leaving Pictet, where he had been its investment chief, instead is to head up a new investment unit at Julius Baer. It is understood that issues around BSI’s Brazilian parent caused Bonzon to rescind his move to BSI.
Separately, BSI Bank in Singapore has been sued for $7.1 million ($5 million) amid claims that it had not paid a headhunter for recruiting a team of 23 bankers. The suit has been brought by Mancano and Associates.
