The Recanati family's Swiss bank, Discount Bank & Trust Company (DBTC) will merge with the de Picciotto family's Union Bancaire-Privee (UBP). Sources inform ''Globes'' that Oudi Recanati signed an MOU to this effect in New York yesterday.
The move will effectively bring to an end the Recanati's bank, founded 50 years ago. The merged bank will be called UBP. UBP is triple the size of DBTC.
DBTC is own in equal shares by Oudi Recanati, his mother Dina, cousin Leon and his sister Judith, and another cousin, Ariel Recanati. Oudi Recanati serves as the active chairman.
UBP is owned by owned by Jewish banking family de Picciotto. Edgar de Picciotto is UBP's chairman.
The terms of the merger have not yet been set, and will be determined by April. It is believed that the Recanati family will receive a minority holding in the merged bank. Overlapping activities and positions will be eliminated in the merged bank.
DBTC CEO Joseph Assaraf confirmed the report. He said the merged bank will be one of Switzerland's three largest banks in the private banking field, and the largest Jewish bank in the world, managing $60 billion in assets.
Last year, Oudi Recanati sold his stake in IDB, thereby liquidating his business activities in Israel. At the time, he said he would focus on Swiss banking.
UBP is considered Switzerland's largest bank in terms of assets managed, and has the fifth highest profits. UBP specializes in private banking and has 1,000 employees. The bank posted a net profit of $118 million and managed $35 billion in assets in 2001.
DBTC posted a net profit of $48 million and managed $12 billion in assets in 2001. The bank has 550 employees, 80% of them in Switzerland.
Published by Israel's Business Arena on 6 February 2002