Bloomberg

(Bloomberg) -- EFG International AG, the Swiss private bank controlled by billionaire Spiro Latsis, said revenue fell in the first quarter as clients cut back on investing amid global market turmoil. The shares fell.

New money from clients was “disappointing,” the Zurich-based company, which is seeking to buy Grupo BTG Pactual’s BSI SA, said in a statement on Friday. The firm didn’t provide figures for revenue, margins or net new money.

EFG fell as much as 2.5 percent and was down 1.5 percent to 6.01 Swiss francs at 10:34 a.m. in Zurich. The shares have fallen more than 43 percent this year after profit fell in 2015.

EFG is expanding as it seeks to compete with larger Swiss wealth managers Julius Baer Group Ltd. and Credit Suisse Group AG. The BSI deal will create the fifth-largest Swiss-based private bank by assets under management, if regulatory approvals are granted and BSI clients decide to move over to EFG.

EFG has implemented half of a 30 million franc ($31 million) cost-reduction program announced in November, according to the statement.

The firm will ask shareholders on Friday to approve a capital increase at a price of at least 6.12 Swiss francs a share to pay for the purchase of BSI. EFG’s controlling shareholder, the Latsis family’s EFG Bank European Financial Group, has committed to invest 271 million francs in the rights offering. The annual shareholder meeting takes place at 2.30 p.m. in Zurich.

To contact the reporter on this story: Giles Broom in Geneva at gbroom@bloomberg.net. To contact the editors responsible for this story: Neil Callanan at ncallanan@bloomberg.net, Andrew Blackman

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