Several potential buyers have emerged for The Abraaj Group's investment management business, Abraaj Investment Management Limited, as a revised offer from previous frontrunner Colony Capital, Inc. (NYSE:CLNY) was rejected, say sources familiar with the matter. The bids by Cerberus Capital Management, L.P., York Capital Management and Abu Dhabi Financial Group will be considered by Abraaj's newly-appointed liquidation committee, which was established this week to help steer the company's future, said the sources. Abraaj's joint provisional liquidators, PwC and Deloitte, are seeking a buyer for Abraaj Investment Management Limited as they seek to safeguard the funds and repay creditors.

The delay caused by the rejection of Colony's offer would add to the time taken to strike a deal, said two sources, potentially eroding asset values. Of the bids currently under consideration by the liquidation committee, which includes representatives of unsecured and secured creditors, only Cerberus had so far conducted the due diligence required before a deal can be completed, said one of the sources.