BTG Pactual May Sell Stakes in Financial Services Companies
January 12 2016 - 12:20PM
Dow Jones News
SÃ O PAULO—Embattled Brazilian investment bank BTG Pactual
confirmed Tuesday it is in talks to sell its ownership stakes in
two financial services companies as it scrambles to improve
liquidity and restore investors' confidence following the November
arrest of its former chief executive as part of an investigation
into corruption at Petró leo Brasileiro SA.
In a regulatory filing, BTG said it is holding discussions to
sell its holdings in insurance company Pan Seguros SA and brokerage
firm Pan Corretora SA. Combined, BTG's stakes in the two Brazilian
companies represent approximately 0.1% of BTG's assets.
BTG, Brazil's largest independent investment bank, took control
of both businesses in 2014. BTG didn't provide information on
possible buyers or a time frame for the deal.
BTG, which up until last year had global ambitions, has been
selling assets to raise cash after the November 25 arrest of its
former Chief Executive Officer André Esteves.
Mr. Esteves, who is no longer involved in the bank's management,
was released from jail in December and is currently under house
arrest. As previously reported, Brazilian prosecutors say Mr.
Esteves plotted with a legislator to bribe a key witness in the
investigation and spirit him out of Brazil.
Mr. Esteves hasn't been formerly charged. Through his lawyer, he
has denied wrongdoing.
Local newspaper Valor Econô mico said Tuesday that French
insurer CNP Assurances Group has entered a three-week exclusivity
period to negotiate the possible acquisition of both Pan Seguros
and Pan Corretora from BTG.
CNP and BTG declined to comment.
CNP has been operating in Brazil since 2001 through Caixa
Seguradora, a subsidiary owned jointly with state-owned Caixa Econô
mica Federal and CNP Assurances's local distribution partner,
according to the French group´ s website.
Caixa Seguradora is said to be Brazil's fifth largest insurance
company, according to the website, and its parent company Caixa
Econô mica is BTG's partner at Banco Pan.
Write to Luciana Magalhaes at Luciana.Magalhaes@dowjones.com
(END) Dow Jones Newswires
January 12, 2016 12:05 ET (17:05 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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