ZURICH/MADRID, May 24 (Reuters) - Swiss private bank

Julius Baer held talks with EFG International

about a potential takeover in recent months but the discussions

have stopped, people with knowledge of the matter told Reuters.

The two Swiss banks were in talks around the time Julius

Baer ousted its chief executive officer Philipp Rickenbacher in

February, after losses on loans to failed property firm Signa,

the people said.

Julius Baer considered EFG's CEO Giorgio Pradelli as a

potential head of a combined entity as part of the takeover

deliberations, the people said.

However, the banks have recently stopped talking, the people

said. Reuters could not establish the reason for the talks

halting. Julius Baer is focusing on appointing a permanent CEO,

a process which will likely take more time, one of the people

and a third person said.

It's unclear whether Pradelli is still under consideration

for the Julius Baer role, the people said.

Spokespeople for the two companies declined to comment.

Bloomberg News earlier on Friday reported that Julius Baer

is exploring a potential acquisition of EFG, citing people with

knowledge of the matter.

EFG has a market value of about 3.8 billion Swiss francs

($4.16 billion) while Julius Baer is valued at about 11.5

billion francs.

($1 = 0.9140 Swiss francs)

(Reporting by Oliver Hirt in Zurich and Jesus Aguado in Madrid.

Additional reporting by Stefania Spezzati. Editing by Anousha

Sakoui and Elisa Martinuzzi.)