Investment unit of BofA is not priced at $3 billion by the bidders

According to the Financial Times, Bank of America Corp's primary investment management unit is getting lukewarm bids after its likeliest suitor, BlackRock Inc, signed a blockbuster deal to buy Barclays Global Investor for $13.5 billion.

The paper says that Bank of America has been trying to sell its Boston-based Columbia Management unit since earlier this year, but the bank has so far not announced a deal for the unit. The company is hoping to get at least $3 billion from a sale of Columbia Management, but bids so far have come in closer to $2 billion.

However, buy-out firms remain interested in First Republic, a private bank that Bank of America has been trying to sell. The FT says that a group led by former bank executive Gerry Ford appears to have the highest degree of interest in the business.

In addition, First Republic could be priced at about its tangible book value -- ranging from $600 million to $800 million depending on how its assets were marked and the degree to which Bank of America agreed to share losses, if sold.