SAO PAULO, Jan 6 (Reuters) - Brazil’s Gouvêa family no longer wants to take control of apparel and home furnishing retailer Leader Participações SA back from bank BTG Pactual SA, newspaper Valor Economico reported on Wednesday.
Valor, without saying how it obtained the information, said BTG Pactual had been informed of the family’s decision in December. The founding family currently has 30 percent control of Leader, the paper said.
Sources close to the situation told Reuters last month the Gouvêa family wanted to buy back control of Leader from BTG Pactual and clients, although at a large discount to the 1 billion reais they paid for their 70 percent stake.
BTG Pactual has tried to sell assets and tap emergency funding since the bank’s former CEO Andre Esteves was swept into a massive graft investigation focused on the country’s state-run oil firm and arrested on Nov. 25, causing investors to flee.
Esteves has been released into house arrest and denies the charges against him.
A standoff between the Gouvêas and the bank had worsened even before Esteves’ arrest, as the family accused the BTG Pactual-backed management at Leader of adopting a failed strategy and firing key staff.
BTG Pactual, Latin America’s largest independent investment bank, took control of Leader three years ago. BTG Pactual and Leader did not immediately respond to a request for comment. The Gouvêa family could not be reached for comment. (Reporting by Caroline Stauffer; Editing by Mark Potter)