EFG to discuss with BTG over final BSI price

EFG International is gearing up for a battle with Brazil's Grupo BTG Pactual SA over the value of BSI Bank, with the Swiss private bank now expecting to cut the purchase price by more than a quarter: it expects a downward adjustment of the estimated BSI purchase price of 277.5 million francs.

The bank cautioned this was "subject to BTG's expected objection and, if necessary, verification by an independent expert". The private bank that bought BSI last year reported IFRS net profit of 339.3 million Swiss francs ($336.27 million) in 2016,  far ahead of the average estimate of 13.8 million in a Reuters survey of four analysts.

Zurich-based EFG, whose largest shareholder is Greece's Latsis family, proposed an unchanged dividend for 2016 of 0.25 francs per share, matching the median survey estimate.

"Our priority for the coming years is to fully realise the potential of this transformational business combination for the benefit of our clients, shareholders and employees," EFG Chief Executive Joachim Straehle said in a statement.
EFG's acquisition of Swiss rival BSI from BTG Pactual last year helped it almost double in size, making it one of Switzerland's 10 biggest private banks behind the likes of UBS , Credit Suisse and Julius Baer.

Efg will erase from 300 to 450 jobs by 2019, and believes that it reached last year the goals it had set itself in terms of savings: in the second half of the year, the costs have been reduced by 11% compared with twelve months before. In the long term the institute aims to new capital inflows, which are expected to grow annually by 3-6%.