Old Mutual has had a £600m bid for discretionary fund management firm Quilter Cheviot rejected, according to Sky News.
Quilter manages around £16bn in assets and was the subject of a recent bid from Old Mutual.
Quilter’s private equity backer Bridgepoint is understood to have rejected the bid on the grounds that it undervalued Quilter.
Other potential buyers, which include Investec, are thought to have looked at takeover of Quilter but it is unclear if any other formal bids have been made.
Bridgepoint is currently focused on a flotation which is likely to take place later in the year.
A Bridgepoint statement says: “Inevitably when IPO plans are being prepared there is parallel speculation and rumours about alternatives. We never comment on such rumours.”
Quilter Cheviot was formed in 2012 from the merger of Quilter & Co and Cheviot Asset Management, with Bridgepoint understood to believe that the combined group is worth at least £700m.