UPDATE 2-Cerberus eyes BTG Pactual assets as bank sells units

jueves 3 de diciembre de 2015 17:57 GYT

(Adds Cerberus comment in paragraph 11)

By Tatiana Bautzer and Guillermo Parra-Bernal

SAO PAULO Dec 3 (Reuters) - U.S. buyout firm Cerberus Capital Management LP has shown preliminary interest in Grupo BTG Pactual SA's stake in debt collection company Recovery do Brasil, which the embattled Brazilian investment bank wants to sell to raise cash, a person with direct knowledge of the matter said on Thursday.

At the same time, the source said, Cerberus is considering a role in BTG Pactual's effort to find a partner for telecommunications provider Oi SA, in which the bank's Caravelas investment vehicle holds an almost 8.0 percent voting stake.

The source, who requested anonymity to speak freely, declined to give a timetable for any decision on a potential investment.

Following last week's arrest of BTG Pactual founder André Esteves, new management is rushing to sell pools of loans, stakeholdings and other assets to raise cash and restore investor confidence. A source familiar with the bank's strategy said the proceeds have helped BTG Pactual replenish cash as asset management clients have withdrawn cash.

BTG Pactual, Latin America's largest independent investment bank, had 40 billion reais ($11 billion) in cash as of the end of September and about 15 billion reais in liabilities maturing by year-end.

In addition to Cerberus, other firms that have shown interest in Recovery, Latin America's largest debt collector, include U.S.-based Lone Star Funds and a local distressed debt fund, sources said.

The Recovery stake could fetch up to 1.7 billion reais, depending on whether the sale includes a platform for pricing loans. A second source involved in the Recovery transaction said Cerberus could be a strong candidate for the asset.   Continuación...