The parent company of Threadneedle Investments is set to make an £800m bid for Scottish Widows Investment Partnership, the fund management arm of Lloyds Banking Group.
Ameriprise Financial, a New York-listed giant with a market value of close to £10bn, is leading a pack of bidders for the business.
Analysts have told the newspaper they believe if an Ameriprise bid was successful it would see most of Swip’s Edingburgh-based employees lose their jobs.
The Sunday Times says Aberdeen Asset Management chief executive Martin Gilbert has ruled himself out of bidding for Swip, having told friends he no longer sees value in big takeovers as the risks outweigh the rewards.
It emerged last week Lloyds was considering selling Swip in a bid to boost capital. The bank has hired Deutsche Bank to advise on the potential sale.