Banco do BrasilSA may sell part of its ownership stakes in Banco Votorantim SA and Banco Patagonia SA as the bank looks to bolster its capitalposition, Valor Econômico reported, citinga bank executive following the negotiations.
Banco do Brasil has yet to decide if it will move forward withthe stake sales, according to the report; however, the state-run bank has been disappointedwith the results of both banks and hopes to avoid providing any capital injectionto either institution.
The possible divestments are part of a broader review of Banco do Brasil's investment portfolioas the bank looks to raise capital amid continued economic troubles in both Braziland Argentina and ahead of new capital requirements that will come into force by2019.
The bank is also reportedly looking to sell its investments inenergy company Neoenergia and silos manufacturer Kepler Weber.
As of July 18, US$1 wasequivalent to 3.26 Brazilian reais.