Exit of the year: UBP paying Recanatis $700m cash for DBTC

Merger with Discount Bank & Trust Co makes de Picciotti outfit one of Switzerland's biggest private banks
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The Recanati family will be getting almost $700 million cash over three years for selling their holdings in

Discount Bank & Trust Co

to Union Bancaire Privee of Zurich, TheMarker has learned.

The buyer, arch-rival UBP belonging to the de Picciotto family, offers private banking and institutional asset management.

Previous assessments were that the transaction would be a share swap. The fact that it was a cash deal makes it the biggest exit by Israelis in 2002, as of writing.

Sources near the Recanatis say the family members already received a hefty sum in cash.

The biggest beneficiaries are cousins Oudi Recanati, his mother, their cousin Leon Recanati, his sister Judith, and another Recanati family member. Each is expected to get about 20% of the compensation, or around $140 million.

The deal between the two banks, first announced in February 2002, was finalized in June. The final price was set at a round one billion Swiss francs, which Friday's official rate makes equivalent to $685 million.

Now a month after closing, the merger has been carried out. In an interview with the

Financial Times

, Guy de Picciotto said the acquisition of DBTC increases the Geneva-based bank's assets under management by 40% to 80 billion Swiss francs.

In terms of managed assets, profitability and scope of balance sheet, the deal made UBP the biggest private bank in Switzerland, bypassing 200-year veterans of renown such as the Julius Baer & Co.