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Friday, January 11, 2013

JC Flowers to sell down BTG Pactual stake, analysts say, (NYSE: GS)

U.S. takeover firm JC Flowers & Co is selling 40 percent of its stake in Brazilian investment bank BTG Pactual Group, according to analysts at Bradesco BBI, partially cashing out of a two-year investment that yielded an estimated 50 percent return.Analysts led by Carlos Firetti said in a client note that New York-based JC Flowers, a private equity firm led by former Goldman Sachs Group Inc star dealmaker Christopher Flowers, would be selling 6.53 million units of BTG Pactual at a minimum 29.50 reais ($14.46) apiece. News of the block sale triggered the steepest fall of BTG Pactual stock in eight months.Units, a blend of common and preferred stock of BTG Pactual's investment banking and private equity divisions, fell 4.3 percent to 31.50 reais on Thursday after the announcement of the sale by an unnamed investor, who priced the stock at a 10 percent discount to Wednesday's close.JC Flowers had made public its intention to exit its stake, which comprises about 1.8 percent of the Brazilian bank's capital. The stake, which the buyout firm acquired for $180 million in December 2010, is valued at about $270 million.

The Goldman Sachs Group, Inc. (Goldman Sachs) is a global investment banking, securities and investment management firm that provides a range of financial services to a substantial and diversified client base that includes corporations, financial institutions, governments and high-net-worth individuals. Shares of GS remained unchanged at $137.37. In the past year, the shares have traded as low as $90.43 and as high as $138.15. On average, 4216600 shares of GS exchange hands on a given day and today's volume is recorded at 0.