BTG Pactual negotiating sale of BSI with three banks, source says

SAO PAULO, Dec 4 (Reuters) - Grupo BTG Pactual SA, the embattled Brazilian investment bank shedding assets after the arrest of its founder, is in talks with three unspecified international banks over the sale of Swiss private bank BSI Group, a source with knowledge of the plan said.

The decision to dispose of BSI, which BTG Pactual integrated only three months ago following Swiss regulatory approval, is part of a strategy by the bank’s new management to sell assets and cut debt, said the source, who requested anonymity because the process remains private.

BTG Pactual declined to comment on Friday.

The source did not give details on the size of a potential transaction. BTG Pactual bought BSI from Italian Assicurazioni Generali SpA for about 1.3 billion Swiss francs ($1.3 billion), helping to double the Brazilian bank’s assets under management to about $200 billion. (Reporting by Tatiana Bautzer; Writing by Guillermo Parra-Bernal. Editing by Jane Merriman)