EFG International, the Swiss private bank, says the price it agreed to pay for BSI last year was too high. One day later the seller, BTG Pactual from Brazil, has responded.
EFG International yesterday said it wanted to pay less than agreed for BSI, the Ticino-based private bank it decided to buy last year. After all, BSI got into trouble over its dealings in Singapore after the transaction was agreed and subsequently was ordered to shut down its operations in the city-state.
Instead of paying 1.06 billion Swiss francs for BSI, EFG International now wants a rebate to the tune of 277.5 million francs.
BTG Pactual Wants More, Not Less
Not surprisingly perhaps, the seller doesn’t agree with EFG's analysis. Instead of granting the Swiss buyer a rebate, it wants it to pay even more than agreed, according to a report by «AWP» newswire (behind paywall, in German). In a statement today, BTG Pactual demanded EFG to pay 95.7 million francs more than agreed.
The Brazil-based bank explained that it wanted more after a detailed analysis of the proposed changes and in consideration of the currently available information.
Adjustment Procedure
The transaction price was due to undergo a final adjustment procedure with a valuation of assets and liabilities of BSI.
EFG yesterday said that BSI had been hurt by an outflow of client assets to the tune of 4.9 billion francs in November and December 2016.
