Australia's AMP close to agreeing joint venture with Ares -source

By Paulina Duran

SYDNEY, Feb 23 (Reuters) - Australia's AMP Ltd andformer suitor U.S.-based Ares Management are close toagreeing a joint venture that would give the American fundcontrol of its asset management business AMP Capital, a sourcewith knowledge of the deal said.

The arrangement, which could be finalised and announcedwithin the next week, would leverage Ares distribution networksto distribute AMP investment funds, the person said, asking notto be identified because the negotiations are private.

Representatives for AMP, which on Feb. 11 said Ares hadwithdrawn a A$6.36 billion ($5.03 billion) takeover offer forthe whole company, declined to comment.

Representatives for Ares also declined to comment whencontacted by Reuters.

Bloomberg reported on Tuesday the deal could value the assetmanagement business at more than A$3 billion and AMP wouldretain a minority stake, citing people familiar with the matter.

Following reviews in the past six months that sought to finda buyer for AMP as a whole or its units, the Sydney-based firmlast week said it had closed all but one of the processes.

Its wealth management businesses in Australia and NewZealand and a banking division, were no longer under review butit would continue in negotiations with Ares about a potentialsale or partnership involving AMP Capital.

A deal was not certain, Chief Executive Francesco De Ferrarisaid at the time.

($1 = 1.2653 Australian dollars)(Reporting by Paulina Duran in Sydney; Editing by David Evans)