Banco Union, Venezuela's fourth-largest bank, is trying to talk Citigroup into raising the price of an option it granted the New York banking company to acquire a 52% stake.

The option was granted as collateral in the event Banco Union defaulted on a $140 million loan from Citigroup. Resolving a default this way would value the acquired shares at $2.70 apiece. Venezuelan banking sources say Ignacio Salvatierra, the bank's president, is holding talks with Citigroup in hopes of raising the strike price to $3.50 a share.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.