Heard on the Street: AMC eyes European bank's local mutual fund unit

A mid-sized asset management company, sponsored by a large industrial house, is learnt to be in talks to buy out the assets of the Indian mutual fund unit of a European bank.

The corporate fund house, which recently beefed up its top management, has plans to grow its assets through acquisitions, industry sources said.

The European asset management company has plans to sell its Asia fund management operations, according to a few international media reports published over the past few months.

Industry sources say the corporate-promoted asset manager will benefit from the deal as the foreign fund house has a significant PMS (portfolio management service) and fund-of-funds portfolios, apart from regular mutual funds.