(Reuters) – Australian investment bank Macquarie Group Ltd is at the early stages of exploring a takeover bid of over 5 billion pounds ($6.00 billion) for British money manager M&G, Sky News reported on Wednesday citing sources.

Macquarie is yet to make an approach to M&G’s board, according to the report.

The valuation is unclear as of now, the report said, adding that a typical takeover premium of 30% would take the offer to around 6.5 billion pounds.

Macquarie is unlikely to keep M&G’s insurance operations, the report added, and could either partner with a firm that could acquire that part the business or look to sell after completing the takeover.

M&G did not immediately respond to a Reuters request for comment while Macquarie declined to comment on the report.

The deal comes at a turbulent time for the British financial services sector as retail savers and investors battle with economic recession, rising interest rates and rampant inflation partly due to the impact of the Ukraine conflict.

(Reporting by Kanjyik Ghosh in Bengaluru; Editing by Krishna Chandra Eluri)