Citi Said to Have Deal for Chile Finance Firm

Citibank has reportedly reached an agreement in principle to repurchase Chile's Financiera Atlas credit company.

Citibank, a unit of Citigroup, sold its stake in Atlas in 1992.

Executives at Citi's Chilean banking affiliate would not confirm the reports. But Citigroup co-chairman John S. Reed said at a conference last month that the bank was interested in buying a Chilean consumer finance company very much like its own Commercial Credit Co. subsidiary.

"Citi has a DNA structure that lets us go global," Mr. Reed said. "We're buying a commercial credit company in Chile."

Reuters noted local press reports that Ariel Sevi, general manager of the Chilean unit of Citibank, had declined to confirm or deny the reports. Mr. Ariel, however, told the Chilean financial newspaper Estrategia that Citigroup is interested in expanding in Chile, including into the low- income segment.

Estrategia added that Citibank is debating whether to issue more loans or buy financial institutions.