Federated Investors is reportedly eyeing a bid for UK-based shop Hermes Fund Managers, which manages over £30 billion ($41.2 billion) in assets.
According to UK broadcaster Sky News, talks have been underway for several months between potential buyers of Hermes and its current management team.
Old Mutual Asset Management, Eaton Vance, and Australian fund manager Challenger, are also rumored to have expressed an interest in Hermes at various stages of the process, although it is unclear whether they are still in the race.
Fenchurch Advisory Partners is acting for the Hermes management team, according to Sky News. Saker Nusseibeh (pictured), chief executive of Hermes Fund Managers, is also taking a prominent role in the discussions.
Federated Investors has nearly $364 billion in assets under management. Hermes and Federated declined to comment on the report.
Hermes was set up in 1983 to manage the assets of the pension scheme for UK telecoms giant BT. The firm is still owned by the scheme.