Sudden change of fortune in the Petrobras corruption scandal: BTG Founder and CEO André Esteves has been released from custody. The takeover offers for its Swiss private-banking unit BSI remain on the table, research by finews.ch showed.
The case of alleged corruption involving André Esteves (pictured below), head of BTG Pactual, has suddenly changed. Amaral Delcídio, the senator arrested at the same time as Esteves, admitted bluffing in his statement, which has been used as key evidence against Esteves. Delcídio now says that Esteves never attempted to bribe witnesses in the corruption scandal.
The highest court in Brazil as a consequence decided yesterday to bail Esteves. He remains under house arrest and had to give up his passport, but wasn't issued with an electronic tag. This may calm the waters at BTG.
BSI Sale in the Balance
But in either way, the sale of BSI is in the balance. BTG Pactual has been able to avert a fire sale, securing a credit line of $1.5 billion last Friday. That will help the Brazil banking group to avoid a liquidity crunch.
Still, the situation remains difficult at the bank. The trust of customers has suffered and sources close to the company in São Paulo told finews.ch that there is a lot of concern surrounding the bank. «Normally, the effects of such a shock are fatale for a bank,» they said.
BSI in Precarious Position
The situation of Swiss daughter BSI is no less precarious. The bank has been rumored as takeover candidate ever since Esteves was arrested. BSI boss Stefano Coduri (pictured below) himself recently mentioned the possibility of a sale of the unit, which only in September was fully integrated.
People close to the situation at BTG Pactual today confirmed the information. «There have been a number of very serious indications of interest in the Swiss private bank BSI,» an insider told finews.ch.
Sell Mandate
BTG has given the U.S. firm Lazard a mandate to sell BSI and the list of companies mentioned as possible buyers is largely accurate, according to the sources. Among the interested institutes is Credit Suisse, Julius Baer and J. Safra Sarasin.
BSI remains in interesting institute, even if it may change owners within a few months only. The past has been cleared up, cost cuts initiated and BTG won't be able to pull assets from the Swiss unit at the last minute.
Surprising Twist
A sale of BSI is far from guaranteed though, the sources said. There has so far been no run for assets and the bank has served all demands. The seven most senior partners in the firm pledged their personal assets as collateral for the facility.
