"There are about five companies on the shortlist" of possible investors in KIT Finance, the source said.
The investment bank said in a statement earlier Wednesday that it was in talks with a strategic investor "with the aim of overcoming difficulties in payments under repo transactions, which appeared after a sharp decline of the stock market."
World markets have been unsettled by the fallout from the mortgage crisis in the United States and the collapse of investment bank Lehman Brothers.
Russia's benchmark RTS and MICEX indexes plunged Tuesday nearly 11.5% and 17.45%, respectively, the biggest falls since the 1998 financial crisis. The stock and currency exchanges suspended trading at 12:10 Moscow time (08:10 GMT) Wednesday on instructions from a federal regulator.
KIT Finance said the talks would end Wednesday.
Lider, a leading Russian asset management company, was reported to be among the possible partners. A Lider spokesperson said Wednesday the company was conducting "consultations" with the bank.
Russian business daily Vedomosti earlier reported that KIT Finance could owe some 6-8 billion rubles ($236-$314 million) under repo transactions, in which banks receive cash from the Central Bank against securities and are to repurchase them at a higher rate.
As of September 1, 2008, the investment bank's charter capital stood at 3 billion rubles ($118 million) and equity capital at 14.8 billion rubles ($580 million).
The bank earlier said it planned to raise at least $1 billion via its IPO that was due in October 2008.
