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Monday, January 31, 2011

BTG, Santos close in on PanAmericano deal-source

Brazilian media tycoon Silvio Santos is at odds with securities firm BTG Pactual over price in talks to sell his stake in Banco PanAmericano (BPNM4.SA), but a deal is expected within "in a day or two," a source with knowledge of the situation told Reuters on Monday. Santos, who owns about 37 percent of PanAmericano's capital, and the deposit insurance fund known as FGC -- which lent the funds for PanAmericano's emergency rescue in November -- are "all right" with most terms offered by BTG, said the source, who requested anonymity because the talks are private. In November, Santos borrowed 2.5 billion reais ($1.5 billion) from the FGC to bolster PanAmericano's balance sheet after accounting problems were found. Santos got the money from the fund using assets owned by his investment holding company Grupo Silvio Santos as a collateral.