NEW YORK -(Dow Jones)- Mellon Financial Corp. (MEL) and Wachovia Corp. (WB) are both bidding for Sun Life Financial Inc.'s (SLF) U.S. mutual fund arm MFS, CNBC reported Wednesday.
The deal is likely to be valued at $3 billion, and CNBC's Charles Gasparino said sources told him that Mellon is in the lead. A deal is expected in the next few weeks, he said. Mellon is primarily a bond house while Wachovia has diversified assets but needs a third-party distributor, he said.
Sun Life on Monday said it has retained investment bankers to advise on strategic alternatives for MFS.
The Toronto-based company also said it remains committed to growing MFS, including expanding distribution and research globally, and improving performance and profit margins.
Sun Life noted that there can be no assurance that a transaction will result from the exploration process.
-A. Christian Jean, Dow Jones Newswires; 201-938-2007; email@example.com