January 10, 2013 / 2:00 PM / in 5 years

Brazil's BTG Pactual tumbles on shareholder's sale plan

* Unnamed holder to sell 5.38 pct stake Friday

* Minimum asking price 29.50 reais/shr, below current level

* Units post steepest drop since last May

(Recasts, adds details of decline and background)

By Guillermo Parra-Bernal

SAO PAULO, Jan 10 (Reuters) - Units of Brazil’s BTG Pactual Group BBTG11.SA posted their steepest decline in almost eight months on Thursday after an unnamed shareholder announced the sale of up to 6.53 million shares.

Units, a blend of common and preferred stock of BTG Pactual’s investment banking and private equity divisions, fell as much as 6.9 percent to 30.63 reais in early trading before recouping some of the losses.

According to a regulatory filing, the unnamed shareholder is asking a minimum 29.50 reais ($14.46) per unit for up to 5.38 percent of the units currently in circulation. [ID:nBVS7fBXDa]

The filing said the shareholder is neither a member of BTG Pactual’s controlling bloc nor part of the bank’s management.

News of the transaction comes at a time when shares of BTG Pactual have traded above their initial public offering price for more than two weeks. The company went public last April.

The share sale “naturally led the market to adjust to a new price level” for the units, said Luiz Roberto Monteiro, an equities trader with Renascença Corretora in São Paulo.

Prior to the bank’s $2 billion IPO, Chief Executive André Esteves sold a 10 percent stake in BTG to sovereign wealth funds and a pool of investors, including private equity firm JC Flowers & Co and Italy’s Agnelli, Colombia’s Santo Domingo and Panama’s Mota families.

The identity of the selling shareholder may become known only after the transaction is concluded on Friday after 1045 local time (1245 GMT). Under Brazilian law, listed companies are required to disclose the name of a seller who disposes of a minimum 5 percent stake.

On Wednesday, BTG Pactual concluded a sale of $1 billion in seven-year notes to global investors. Bids for the securities exceeded the amount of paper supplied by 6.3 times. [ID:nL1E9CA1LG]

(Reporting by Guillermo Parra-Bernal; Editing by Lisa Von Ahn and John Wallace)

((guillermo.parra@thomsonreuters.com)(+55-11-5644-7714)(Reuters Messaging: guillermo.parra.thomsonreuters.com@reuters.net)) Keywords: BTGPACTUAL SHARES/

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