JP Morgan Chase has agreed to acquire Highbridge Capital Management, one of the world's largest hedge fund managers with $6.6bn (€5.4bn) of assets at the end of 2003.

Sources close to the bank confirmed the acquisition of a majority stake in the hedge fund manager, which was the 17th-largest firm in the industry at the end of last year. The price was not disclosed but investors in Highbridge's funds said the firm could be worth between $500m and $1bn.