Media speculation continues around the fate of BSI, the private bank bought less than a year ago by BTG Pactual but rumoured to be up for sale again as its parent seeks capital amid a corruption scandal.

Safra Group, which manages investments of Lebanese-Brazilian billionaire Joseph Safra, reportedly doesn’t intend to bid for Switzerland-headquartered BSI, currently owned by embattled BTG Pactual, the Brazilian lender. 

Reuters quoted Safra Group as saying that Bank J Safra Sarasin or other parts of the Safra Group “are not buying, nor are they going to buy, BSI”. The comment rebuts a report by Swiss newspaper Handelszeitung that such a bid would be made. The Swiss newspaper said it got the information from “senior sources”; it did not give a timeframe nor say what sort of price was being contemplated.

The speculation over the ownership of BSI has blown up just weeks after BTG Pactual completed its purchase of BSI, which operates in markets such as Asia, last year. BTG Pactual’s founder, André Esteves was arrested in November last year in connection with a corruption probe. One issue is that BTG Pactual may need to sell assets to raise capital, and urgently. Such a rapid purchase and sale would highlight in dramatic fashion the unsettling impact that M&A deals can have on private banking clients.

Several private banking firms are considering a bid for BSI and has named Credit Suisse, Julius Baer, Safra Sarasin and China’s Fosun International. BSI, BTG Pactual and Julius Baer reportedly declined to comment top the news service on the matter.

BSI was put on the block after BTG Pactual's billionaire founder André Esteves was arrested in connection with a corruption probe in Brazil last November, prompting outflows of client and investor capital from the Brazilian bank. 

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.