Citi Heard Seeking Buyer for Colfondos

Colombian pension fund Citi Colfondos is still in discussions with possible buyers, says a banker away from the deal, amid widespread rumors that the unit is on the block. He adds that ING’s local pension fund, known as ING Pensiones y Cesantias and insurance company Colpatria, which have been rumored to be after Colfondos, are likely buyers. A Bogota-based equity analyst covering Colombian pension funds says it would make more sense for ING to buy Citi Colfondos, since it already participates in the sector. Of the 6 pension funds in Colombia, Citi Colfondos is fourth largest, with COP243.6bn in assets as of July and ING is fifth, with COP176.7bn in assets, according to the local securities commission. If merged, combined assets would make them third largest. The biggest company in the sector is Porvenir, with COP508.7bn, followed by Proteccion, which has COP430.7bn in assets. Francisco Aristeguieta, Citi’s CEO for Colombia and the Andean region, did not return calls for comment Friday. A spokeswoman for Citi in Colombia would not confirm or deny information regarding a sale, saying she cannot comment on market rumors.