LONDON: UniCredit, Italy's biggest bank by assets, is expected to pick a partner for exclusive talks to buy a stake of up to 50 percent in its asset management division Pioneer towards the end of September, two sources familiar with the matter said.

The sources said on Wednesday Spanish bank Santander and a consortium comprising private equity fund CVC Capital Partners and Singapore sovereign fund GIC were the two strongest contenders, even though US fund Advent is also in the frame.

At least one of the proposals values the whole of Pioneer at around 2.4 billion-2.7 billion euros($3.5 billion), or 9-10 times EBITDA of 270 million euros, one of the sources said.