BTG Pactual’s boss is hit by fine in Italy

 
City A.M. Reporter
ANDRE Esteves, the billionaire boss of Brazil’s BTG Pactual, has been fined €350,000 by Italy’s financial regulator for insider trading, just 10 days before his investment bank’s looming stock market listing.

BTG Pactual said yesterday its activities would be unaffected by the ruling against Esteves, who owns 24 per cent of the Brazilian bank, making him one of Brazil’s richest executives.

But it will force the bank to amend its prospectus and puts a cloud over one of this year's highest profile bank deals.

According to the Italian market watchdog Consob, Esteves made use of privileged information about a planned joint venture involving Italian meat company Cremonini when he bought Cremonini shares in November 2007.

In a statement, BTG Pactual said Esteves believed the allegations had no merit and was determined to appeal the decision. The firm had said in its prospectus this month the outcome of the case should have no impact on its upcoming public share listing.