Corpbanca Jumps in Chile After Report of Itau Merger Deal

Corpbanca SA (CORPBANC), the lender controlled by billionaire Alvaro Saieh, rose the most on record after Diario Financiero reported that the bank agreed to be sold to Brazil’s Itau Unibanco Holding SA. (ITUB4)

Shares surged 15 percent to 7.85 pesos at 9:36 a.m. in Santiago, before the exchange suspended trading as it awaits an official explanation from the company for the move.

Corpbanca’s board will vote early next week on selling a majority stake to Itau, which would value the Chilean lender at $7.4 billion and give Saieh at least one seat on the merged entity’s board, Diario Financiero said, citing unidentified people close to the talks. The valuation is 68 percent higher than Corpbanca’s market capitalization as of yesterday.

Corpbanca confirmed Nov. 29 it was in talks with local and foreign banks to study a merger.

An external press relations official for Corpbanca didn’t respond to e-mails and a phone call seeking comment on an agreement with Itau. Itau declined by e-mail to comment on the report and referred to a previous filing in Brazil in which it confirmed talks with Corpbanca.

Spain’s Banco Bilbao Vizcaya Argentaria SA (BBVA) is no longer planning to bid for Corpbanca, Diario Financiero said in its report. Paul Tobin, a spokesman for BBVA in Madrid, declined to comment.

To contact the reporter on this story: Eduardo Thomson in Santiago at

To contact the editor responsible for this story: Brendan Walsh at

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