Itau Unibanco said it is holding discussions to buy a minority stake in the local financial services firm XP Investimentos.
Local business magazine Exame reported on Tuesday that Itau has offered BRL6bn ($1.9bn) for 49.5% of XP. But Itau said in a securities filing that it has not yet reached an agreement on an acquisition.
XP has hired four banks – BTG Pactual, Itau BBA, JPMorgan and Morgan Stanley – to lead a potential IPO in July that could raise more than $1.5bn. The private equity firm General Atlantic is expected to sell some of its 49% stake in XP in the equity offering.