Australian investment bank Macquarie is exploring a potential takeover offer for M&G, according to Sky News.
With £434bn of AUM under its belt already, Macquarie is reportedly being advised by Morgan Stanley. No offer for the former UK arm of Prudential has yet been tabled, however.
M&G currently manages £350bn assets and has a market cap of £5bn.
While a precise valuation is currently unclear, the standard 30% takeover premium could see the price tag go as high as £6.5bn.
According to Sky, Macquarie would be unlikely to retain M&G’s insurance arm and could look to offload it upon completion of the takeover.
As of midday, the firm’s share price was down to £2.18, a 10p fall since the start of the day’s trading.
Portfolio Adviser has contacted M&G for comment.
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