November 9, 2016 / 1:12 PM / 2 years ago

UPDATE 1-BTG Pactual shares slump after profit miss, management reshuffle

(Recasts to add share performance, details of management changes)

By Guillermo Parra-Bernal

SAO PAULO, Nov 9 (Reuters) - Shares in Grupo BTG Pactual SA posted their biggest slump in two months on Wednesday after Latin America’s largest independent investment bank reshuffled key management and board positions and missed third-quarter profit estimates by a large margin.

In a securities filing, BTG Pactual said on Wednesday that Chairman Persio Arida quit for personal reasons and will be replaced by co-Chief Executive Officer Marcelo Kalim. Roberto Sallouti will become the bank’s sole CEO.

Late Tuesday, São Paulo-based BTG Pactual said third-quarter profit fell the most on record on an annual and quarterly basis, reflecting money-losing bets at a recently spun-off commodities sales and trading unit and the disposal of a majority stake in a Swiss private banking unit.

Units, a blend of common and preferred shares in BTG Pactual’s investment-banking and private-equity divisions, shed as much as 5.6 percent in early Wednesday trading, extending losses over the past three months to over 11 percent.

The unexpected profit slump and management changes come as BTG Pactual reshapes itself a year after founder and former CEO André Esteves was arrested in connection with a corruption probe in Brazil.

Management will discuss results and the reshuffling at the board at a conference call with investors later in the day. Goldman Sachs analyst Carlos Macedo put his target price and estimates on units of BTG Pactual on review, pending the call. (Additional reporting by Bruno Federowski in São Paulo; Editing by Louise Heavens and Jeffrey Benkoe)

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