EFG in Talks to Buy BSI From BTG Pactual

SAO PAULO—Swiss private banking group EFG International is in exclusive talks regarding a potential acquisition of BSI SA from troubled Brazilian investment bank BTG Pactual SA.

The bank announced the talks in a statement posted in its website on Friday, highlighting that, so far, "no decision has been made."

Officials of BTG, whose former chief executive has been ensnared in a corruption scandal, were not immediately reached for comment.

BTG Pactual completed its purchase of BSI from Italy's Assicurazioni Generali SpA in 2015 for 1.25 billion Swiss francs ($1.26 billion). BSI is the oldest bank in the Swiss canton of Ticino, southern Switzerland.

BTG has been selling assets to generate cash and restore the confidence of investors since the arrest in November of its former CEO André Esteves. A person close to the bank said in December that talks to sell BSI were under way. BTG was seeking about $1.95 billion from the sale, the person said at the time.

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.

Write to Rogerio Jelmayer at [e-mail]

(END) Dow Jones Newswires

February 19, 2016 05:45 ET (10:45 GMT)

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