STXNEWS LATAM-BTG Pactual may buy Banco Pan insurance unit, Estado says

Fri May 2, 2014 9:13am EDT

Brazilian state-run mortgage lender Caixa Economica Federal and investment bank Grupo BTG Pactual SA are considering the acquisition of consumer finance company Banco Pan's insurance unit, O Estado de S. Paulo newspaper reported, citing a source with knowledge of the situation.

Should the deal be confirmed, an additional capital investment in the insurer of 500 million reais to 1 billion reais may be necessary. The cost of acquiring the unit may run from 600 million to 700 million reais, another source said.

The media office of BTG Pactual did not have an immediate comment on the report.

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