UPDATE 1-Brazil's Grupo BTG Pactual in talks with Italy's Generali over BSI sale

miércoles 14 de mayo de 2014 17:40 GYT
 

(Adds quote, context on potential sale)

By Guillermo Parra-Bernal and Lisa Jucca

SAO PAULO May 14 (Reuters) - Grupo BTG Pactual SA, Latin America's largest independent investment bank, is in exclusive talks to buy wealth management firm BSI from Italian insurer Generali SpA, according to a statement Wednesday by Generali.

The announcement came at the end of a Generali board meeting prior to the Italian company's release of first-quarter earnings early Thursday.

Sao Paulo-based BTG Pactual, controlled by billionaire financier Andre Esteves, is seeking the purchase of a wealth management company to add more fee-related activities to the fast-growing banking empire he has built since 2009.

Asset and wealth management revenue have become a bigger portion of the bank's revenue over the past two years, partly because of the units' strong performance in the wake of weak capital markets activity in Brazil.

"Generali has granted exclusivity to Banco BTG Pactual ... to conduct negotiations relating to the potential acquisition of the entire share capital of BSI," the Generali statement said.

Generali, Europe's No. 3 insurer, is pushing ahead with a plan to sell 4 billion euros ($5.48 billion) of assets to bolster its capital base. BSI, a wealth manager, has been on the block for a number of years but had failed to draw sufficiently attractive bids.

BSI, a wealth manager headquartered in Switzerland's Italian-speaking Ticino region, could be worth around 2 billion euros, some analysts have said, making it a key piece of Generali's asset disposal strategy.   Continuación...