Standard Life today confirmed press speculation that it was in "exclusive and advanced discussions" which may lead to a £400m bid for Ignis Asset Management.
Standard Life is talking to life insurer Phoenix Group Holdings, owner of Ignis, regarding a potential acquisition of Ignis Asset Management Limited.
A spokesman for Standard Life said: "Discussions are on-going and there can be no certainty that any transaction will be agreed. Standard Life plc will make further announcements if and when appropriate."
Weekend newspaper reports speculated that Standard Life was interested in acquiring the fund manager.
There were also reports that other fund management groups may also be interested in buying Ignis which manages just under £70bn in assets.
Ignis parent Phoenix confirmed an approach from Standard Life.
Phoenix is set to post its annual results on Wednesday this week and is likely to issue an update then.
The fund management sectors has several takeovers in recent years including Aberdeen's recent acquisition of SWIP and Schroders' purchase of Cazenove.
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