Three Bidders Left for Citi’s Asset Management Unit

(Reuters) – Sumitomo Trust & Banking Co (8403.T), T&D Holdings Inc (8795.T) and Bank of New York Mellon Corp (BK.N) are the remaining three contenders to buy Citigroup’s (C.N) asset management unit, the Nikkei business daily reported without citing any sources.

Citigroup is looking to sell Nikko Asset Management, Japan’s third-largest fund manager with about $90 billion in assets under management, as part of efforts to recover from heavy losses in the global financial crisis.

Citigroup, which is selling the unit as part of restructuring efforts, is pushing ahead with negotiations with each of the firms, including seeking a bumped-up purchase price, and will continue to ensure optimum terms, the paper said.

A decision on the buyer will not likely occur until next month, the daily added.

Last week, five sources familiar with the matter had told Reuters that investment bank Nomura (8604.T) and insurer T&D Holdings (8795.T) were among five firms in the second round of bidding for Nikko Asset Management, in a deal likely to top $1 billion.

(Reporting by Sweta Singh in Bangalore; Editing by Anil D’Silva)