Brazilian midsize bank Panamericano's controlling shareholder Silvio Santos has agreed to sell the bank to BTG Pactual, local daily Folha de S Paulo reported.
Santos agreed to sell the bank after its losses rose to 4bn reais (US$2.4bn) up from a previously announced 2.5bn reais, according to the report.
Under the agreement, BTG will assume the losses and pay an additional amount in exchange for Santos' stake in Panamericano.
In September 2010, Panamericano put 2.5bn reais in a special facility with deposit guarantee fund FGC to make up for the shortfall from faulty accounting of loan assignment transactions that were discovered after a routine review of its operations by the central bank BCB.
The bank's management team - mainly composed of personnel appointed by federally controlled Caixa Econômica Federal (CEF), after it bought a large stake in Panamericano last year - made the discovery while preparing to release the bank's 3Q10 results again on Monday (Jan 31). Now the bank will release third quarter results on February 2, according to the report.