Deutsche Asset Management has reduced the number of potential bidders for its London-based operation to a short list of four. They are understood to be Aberdeen Asset Management, Unicredito, BNP Paribas and Nordea, although none would comment.

One investment banker said: "My guess is that the London operation wouldn't fetch more than £200m (€294m). Bidders are focusing on the potential of its fixed-income team under Steve Ilot."