Merrill Lynch Investment Managers is considering the sale of its Los Angeles-based investment operation, which only last week lost a star team of fund managers, and is understood to be in talks Stilwell Financial.

Merrill Lynch has been examining the strategic options for the asset management business, which used to be known as Hotchkis and Wiley, for a couple of months. According to US website InvestorForce Stilwell Financial is in talks with Merrill Lynch & Co that may lead to a sale of the unit. Stilwell has been looking to acquire other money managers in a move to reduce its dependence on the revenue and profits from Janus Capital Corporation arm. A MLIM spokesperson would only say that the review of options &quotmay or may not include a sale of the business - there have and will continue to be several possibilities on the table&quot.