UPDATE: AXA Receives 5 Bids For Private Equity Arm - Source

French insurance giant AXA SA (CS.FR) received five bids for its private equity arm by Monday's deadline, a person familiar with the situation told Dow Jones Newswires Tuesday.

Kohlberg Kravis Roberts & Co., BlackRock Inc. (BLK), Canadian asset manager Onex Corp. (OCX.T), Canadian pension fund Caisse de Depot et Placement du Quebec and Government of Singapore Investment Corp., the Singapore sovereign wealth fund, all submitted first-round bids.

Other potential bidders that haven't yet had a chance to meet with management may submit bids in the next few days, the person said.

AXA has hired Credit Suisse Group (CS) to handle the sale of its private equity arm, which manages $28 billion in assets and could fetch more than GBP300 million.

There is also a possibility that AXA will retain a minority stake in the business.

Dominique Senequier, chief executive of the business, favors a management buyout of the business backed by one of the potential buyers, according to press reports.

Investors in private equity funds, known as limited partners, need to be reassured that their funds will be managed at a similarly high level under any new ownership.

A model that may be adopted is one used by Carlyle Group which bought Dutch private equity manager Alpinvest Partners in January. Alpinvest manages EUR32.3 billion and still operates independently within the Carlyle portfolio.

"Keeping all levels of management is key to the AXA Private Equity deal and its limited partners," said another person familiar with the matter.

Carlyle Group, Eurazeo (RF.FR) and 3i Group PLC (III.LN) aren't among the bidders, people added.

-By Marietta Cauchi, Dow Jones Newswires; [phone]; [e-mail]