Janus CEO departed after rift on sale-sources

* Gary Black wanted to sell the firm-sources

* Board preferred to raise capital-sources

* Mass Mutual and Franklin Resources were among bidders

By Steve Eder

NEW YORK, July 15 (Reuters) - A rift between Janus Capital Group Inc's (JNS.N) chief executive and its board over the potential sale of the company to bidders including Franklin Resources (BEN.N) was behind Janus CEO Gary Black's surprise resignation, sources familiar with the talks said on Wednesday.

The mutual fund company for months had been in negotiations over a sale, but on Tuesday it showed Black the door as it announced it would raise $300 million in capital. The timing of Black's departure raises questions about the company's description of the parting as "mutually agreed" and "very amicable."

The sources said rival fund management companies Mass Mutual and Franklin Resources were the leading bidders for Janus. An offer from Mass Mutual for about $14 a share fell through, but Franklin Resources was willing to pay about $13.50 a share in an all-share deal, the sources said.

Janus shares, which initially fell after the announcement of Black's departure and the plan to raise capital, were up about 3 percent at $11.52 in afternoon trading.

Several members of Janus's board declined to comment and referred questioned to the company. Janus spokeswoman Shelley Peterson declined to comment. (Additional reporting by Paritosh Bansal; Editing by Phil Berlowitz)