UTI Asset close to 26 pct stake sale - papers

MUMBAI (Reuters) - UTI Asset Management Co, India's oldest mutual fund, is in advanced talks with global firms to sell a 26 percent stake, Indian papers said on Monday, citing anonymous sources.

The Economic Times, citing a person familiar with the development, said UTI had short-listed four players including U.S. firm T. Rowe Price, Japan's Shinsei Bank and two European firms, which were not named in the article.

The Business Standard, citing sources close to the development, said T. Rowe Price was the frontrunner of three potential buyers, which it said included Vanguard Mutual Fund.

The Business Standard said the buyer was expected to pay 15 billion rupees to 18 billion rupees ($310 million to $375 million) for the stake, valuing the company at up to 75 billion rupees. The Economic Times did not put in a value for the deal.

UTI officials could not be reached for comment immediately by Reuters.

In July, UTI Asset Management put off plans for a $480 million initial public offer due to falling stock markets. It had aimed to sell a 49 percent stake through the sale by its founders and a fresh issue of shares.

State-run State Bank of India, Punjab National Bank, Bank of Baroda and Life Insurance Corp of India each own 25 percent of the UTI Asset and will sell a part of their stake, the papers said.

The Business Standard said the four owners would sell an equal amount of their holdings.