FRANKFURT/LONDON, June 21 (Reuters) - State Street

, BNP Paribas and Caceis are lining up as

potential bidders for the sale of HSBC Germany's fund

administration unit INKA and custody business, three sources

familiar with the matter told Reuters.

The process is due to launch in the next couple of weeks, as

soon as HSBC decides with its advisers whether to sell the

assets together or separately, the sources said, speaking on

condition of anonymity.

HSBC is hoping the overall valuation for INKA and the

custody unit could be more than 700 million euros ($751.17

million), the first person said.

Other fund administrators including Universal Investment,

owned by private equity firm Montagu, could emerge as bidders

for INKA, while BNP Paribas and State Street are mainly

interested in HSBC's custody business, this person added.

HSBC, State Street, BNP Paribas, Caceis and Montagu declined

to comment.

INKA is one of the biggest fund administrators in the

industry with around 400 billion euros of assets under

administration at the end of 2023. With more than 51 billion

euros in net cash inflows in 2023, INKA has a market share of

almost 22%, according to HSBC's website.

The custody business could also be attractive for potential

buyers like Caceis, a French asset servicing bank with a

presence in Germany, because it is already active in this space,

the second source said.

Caceis has 4.7 trillion euros of assets under custody and

3.3 trillion euros of assets under administration, according to

fiscal year 2023 figures available on its website.

($1 = 0.9346 euros)