BTG Pactual May Sell Stakes in Financial Services Companies

Sà 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 [e-mail]

(END) Dow Jones Newswires

January 12, 2016 12:05 ET (17:05 GMT)

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