Brazil's BTG Pactual Authorizes Talks to Sell BSI
January 14 2016 - 8:20AM
Dow Jones News
SÃ O PAULO—Brazilian investment bank BTG Pactual SA, whose
former chief executive has been ensnared in a corruption scandal,
said Thursday it has authorized talks to sell its Swiss bank
BSI.
BTG Pactual completed its purchase of BSI from Italy's
Assicurazioni Generali SpA in 2015 for 1.25 billion Swiss francs
($1.25 billion).
BTG has been selling assets to generate cash and restore the
confidence of investors since the November arrest of its former CEO
André Esteves.
A person close to the bank said in December that talks to sell
BSI were already under way. BTG was seeking to get around $1.95
billion from the sale, the person said then.
Brazilian authorities arrested Mr. Esteves on allegations of
witness tampering and obstruction of justice. Through his lawyer,
he has denied the allegations.
Prosecutors say Mr. Esteves tried to buy the silence of a key
witness whose testimony could potentially implicate the banker in
the corruption scandal at state-controlled oil company Petró leo
Brasileiro SA, or Petrobras.
The banker was released from jail in December and is currently
under house arrest.
Earlier this week, French insurer CNP Assurances confirmed it
has entered into exclusive negotiations with BTG to acquire 51% of
the Brazilian bank's insurance firm PAN Seguros SA and brokerage
Pan Corretora SA.
Write to Luciana Magalhaes at Luciana.Magalhaes@dowjones.com
(END) Dow Jones Newswires
January 14, 2016 08:05 ET (13:05 GMT)
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