Aberdeen Asset Management is now favoured over rival Schroders to acquire Credit Suisse's  Global Investors division in a share-based deal, according to a Financial Times report.

The division, which is up for sale after a strategic review earlier this year, has around Sfr255 billion in long only equity and bond funds. According to the report, the unit could be valued at around £1 billion, which it says would be ploughed back into the Swiss bank's wealth management division.

Aberdeen, which the report says was not the preferred bidder, currently has about £110 billion in assets under management. A successful bid for the Credit Suisse business would make the group the UK’s largest listed fund manager.