The saga of BSI, the Swiss bank bought only last year by Brazil's BTG Pactual before speculation started that it might have to sell it, has taken another twist.

Zurich-listed EFG International today confirmed it is in exclusive talks with Brazil’s BTG Pactual about a potential acquisition of BSI, which BTG Pactual is looking to sell just a few weeks after having completed its purchase.

EFG said in a statement: “[EFG] has taken note of an online Ticino media report according to which EFG is in exclusive discussions with BTG Pactual in relation to a potential acquisition of BSI and that a decision is imminent. In accordance with SIX regulations, EFG confirms that it is in exclusive discussions with BTG Pactual regarding a potential acquisition of BSI. No decision has been made.” EFG made no further comment.

The saga of BSI has become, in the words of one individual, working in private banking M&A who commented to this news service in Geneva yesterday, a “case study” in how wealth management acquisition deals can go astray. Last year, BTG Pactual bought BSI, a Switzerland-headquartered private bank with operations in regions such as Asia. However, late last year, the arrest of BTG’s founder, André Esteves, in connection with a national corruption probe in Brazil meant that BTG Pactual was looking to sell assets to raise capital, and urgently. As a result, speculation immediately began about BSI’s fate. A number of banks have been touted as potential suitors.

Among other recent developments, Yves Henri Bonzon, who last year was due to join BSI after leaving Pictet, where he had been its investment chief, instead is to head up a new investment unit at Julius Baer. It is understood that issues around BSI’s Brazilian parent caused Bonzon to rescind his move to BSI. 

Separately, BSI Bank in Singapore has been sued for $7.1 million ($5 million) amid claims that it had not paid a headhunter for recruiting a team of 23 bankers. The suit has been brought by Mancano and Associates.