Old Mutual, the life assurer, is in pole position to tie up a £1bn (€1.4bn) purchase of AMP's UK operation, thanks to its ability to run its Pearl Assurance insurance funds cheaply from its home in South Africa.

Investment banking sources confirm that Old Mutual is "extremely interested" in the AMP business. They pointed out that Henderson Global Investors' fund management business would make Old Mutual a serious player in the UK institutional market for the first time.