** Shares of MA Financial Group MAF.AX down 1.4%, paring losses after falling as much as 5% earlier in the session

** Asset manager confirms it is in talks with Melbourne-based IP Generation about a potential acquisition

** Media report on Tuesday said that MAF is in "advanced discussions" to acquire IP Generation

** Co says if the acquisition proceeds, it won't involve equity raising

** MAF's gains trimmed to 13.6% YTD after current session's losses

(Reporting by Kumar Tanishk in Bengaluru)

((Tanishk.Kumar@thomsonreuters.com; X: @thatstanishk http://www.x.com/thatstanishk;))