BTG Pactual is asking Italian insurance giant Generali for damages related to losses it said it suffered with Swiss private bank BSI, said Bloomberg on Wednesday following a release from BTG on Tuesday evening.
BTG said the losses are connected to 1Malaysia Development Bank (1MDB), which is currently mired in a corruption scandal involving Malaysian Prime Minister Najib Razak.
BTG, a Brazilian financial company, purchased BSI from Generali in September 2015.
Generali said that BTG's request for damages doesn't "furnish any evidence to support possible violation of a declaration according to the sales contract".
BTG resold BSI just five months after its purchase from Generali, after a corruption scandal brought the arrest of former BTG chief André Esteves.
Bloomberg reported that BTG notified Generali of the damages request by letter, in which the company said it had a "right to damages to cover potential liabilities linked to BSI activity with a Malaysian state fund".
Last week BSI chief Stefano Coduri told investors that his bank was ceasing activity with 1MDB due to "official investigations" now underway.
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