New York-based asset manager Federated Investors is one of four firms eyeing a potential bid for Hermes Investment Management, which is owned by the BT Pension Scheme, according to reports.
The $364bn US company has been in talks with the UK's biggest corporate retirement scheme about a potential acquisition for several months, according to Sky News.
Other suitors for Hermes, which has £28bn in assets under management, who have apparently expressed an interest in the business include Australian fund manager Challenger, US-based Old Mutual Asset Management and Eaton Vance.
According to reports, chief executive Saker Nusseibeh, is thought to be playing a leading role in the discussions while Fenchurch Advisory Partners is acting for the Hermes management team.
Sky sources also say the BT Pension Scheme, which is being advised by PricewaterhouseCoopers, may choose to retain a stake in Hermes as part of any deal.
It was also noted that any deal is unlikely to be announced until the New Year.
The news comes after a string of mergers and acquisitions across the asset management industry including mega-mergers between Henderson Global Investors and Janus Capital in 2016, and Standard Life and Aberdeen Asset Management earlier this year.
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