Henderson Group has confirmed it hopes to buy New Star Asset Management.
The group had been given exclusive rights as the preferred bidder after bids from Schroeders and Neptune Investment Management failed, the Telegraph has reported.
New Star is owned by a group of banks including HSBC, Lloyds Banking Group, Royal Bank of Scotland and National Australia Bank.
“Henderson Group confirms that it is in discussions with New Star regarding a possible transaction, including a possible offer for New Star by the Group,” it announced.
Henderson manages a broad range of investments including equities, fixed income, commercial property and private capital.
The group completed one of the largest commercial property deals in 2008 when it purchased three out-of-town retail malls for £365 million.
The global economic crisis has sparked a series of buy-outs and consolidations in the asset management sector.