Brazil's BTG Pactual Authorizes Talks to Sell BSI

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 [e-mail]

(END) Dow Jones Newswires

January 14, 2016 08:05 ET (13:05 GMT)

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