Mellon Financial made the strongest offer in the bidding for MFS Investment Management, but MFS parent Sun Life Financial is continuing to talk with officials from Wachovia Corp. as well, according to investment bankers following the negotiations who requested anonymity. The bankers speculate that a deal with Wachovia could better meet Sun Life's continued interest in the money management sector, leaving the firm with a larger stake in an entity that would be formed by combining MFS and Wachovia subsidiary Evergreen Investment Management than it could get by injecting MFS into Mellon Financial.
Mellon spokesman Joe Ailinger and Evergreen spokesman Dan Flaherty both declined comment. Sun Life spokeswioman spokeswoman Susan Jantzi declined to comment.
