The UK's F&C Asset Management has received an offer from Canada’s BMO of 120 pence in cash per ordinary share for its issued and to-be issued ordinary share capital, in a deal valued at a reported $1.3 billion.

The UK's F&C Asset Management has received an indicative offer from Canada’s BMO Financial Group of 120 pence in cash per ordinary share for F&C's issued and to-be issued ordinary share capital, in a deal valued at a reported $1.3 billion.

F&C said it and BMO are in “advanced discussions” about the details of the possible offer, while the board of F&C has indicated to BMO that it is likely to recommend a firm offer at the offer price.

“This announcement does not amount to an announcement of a firm intention to make an offer and there can be no certainty that an offer will be made,” F&C said in a statement today. “This announcement has been made with the consent of BMO.”

According to the statement, BMO has until 24 February 2013 to make an offer or state that it has no intention to. The deadline may be extended with certain approvals and a further announcement will be made in due course, F&C said.

A number of Canadian banks have made significant international acquisitions in recent years. At the end of 2010, for example, Royal Bank of Canada completed its purchase of BlueBay Asset Management, the UK-listed specialist investment house, in a deal worth £963 million (around $1.5 billion).

Meanwhile, in March 2013 Canada’s TD Bank Group acquired New York-listed Epoch Holding Corporation and its wholly-owned subsidiary Epoch Investment Partners, adding $25.9 billion in assets under management and significantly expanding its North American investment management footprint.

More recently – this month, in fact - Toronto-listed Canadian Imperial Bank of Commerce bought Atlantic Trust Private Wealth Management, the US-based private wealth management firm, from Invesco for $210 million. The deal was first announced in April 2013.

If the BMO-F&C deal goes ahead, F&C shareholders will be entitled to receive and retain an ordinary course dividend of 2 pence per F&C share for the financial year ended 31 December 2013.

According to a report by The Globe and Mail - which highlighted that UK firms operate under a different set of disclosure rules that require them to be more forthcoming as regards acquisition rumours - BMO declined to comment.