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Cultura

Julius Baer shares jump on U.S. tax probe news


    ZURICH (Reuters) - Shares in Julius Baer jumped 5 percent in early trade on Wednesday after the Swiss private bank said it would book $350 million towards an expected settlement in a U.S. criminal investigation into how the Swiss bank helped wealthy Americans avoid taxes.

    "This is much less than feared and removes a major uncertainty from the case," Kepler Cheuvreux analyst Dirk Becker said in a research note, maintaining his "reduce" rating on the stock given what he called its high valuation.

    Safra Sarasin analyst Rainer Skierka cited news that U.S. officials had not requested a guilty plea in the case as another positive factor, adding that excess capital after a fine of that magnitude would give Baer leeway for a higher payout ratio, share buybacks or acquisitions. He maintained his "buy" rating.

    (Reporting by Michael Shields; editing by Jason Neely)