Franklin pips Religare, Macquarie in race for AIG arm: WSJ

India's Religare Enterprises and Australian Macquarie Group, in race for buying global insurer AIG's asset management unit, face stiff competition from Franklin Templeton Investments, which has emerged as the leading bidder, says a media report.

The Wall Street Journal citing people familiar with the matter in a report said, "Franklin Templeton Investments has emerged as the leading bidder for American International Group Inc's asset-management business, a deal that also has drawn interest from Australia's Macquarie Group and Religare Enterprises of India."

The AIG Investments unit, which manages about $85 billion in assets for clients, including pension funds and insurance companies, is expected to fetch a price of about $500 million, well below the $800 million some suitors proposed paying just two months ago, the report said.

A deal is expected to be completed by June end, it added.

Macquarie and Religare, which formed a joint venture to compete for the AIG division, are prepared to jump back into bidding if AIG's negotiations fall through with Franklin Templeton and its partner, New York-based private equity firm Crestview Partners LP, the daily said.