Macquarie Group, the Australian banking firm, is considering a multi-billion pound bid for FTSE 100 asset manager M&G.
According to reports from Sky News, Macquarie is in early stage talks of a "exploring an approach" to M&G for takeover discussions.
It is reported that no formal bid has taken place yet and the valuation of the proposal remains unclear.
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Reports have speculated that a typical takeover incurs a 30% premium, and with M&G currently holding a £5n valuation an offer could potentially reach £6.5bn.
The proposal is set to be advised by Morgan Stanley on Macquarie's side, with the UK-based firm taking counsel from Goldman Sachs, Bank of America and Evercore.
M&G covers a vast array of sectors in its business but Macquarie is unlikely to keep M&G's insurance operations, the report added.
M&G has been contacted for comment. Macquarie Group declined to comment.
