Bloomberg News

Legg Mason Rises on Report of Interest From Buyout Firms

January 10, 2013

Legg Mason Rises Most Since May on Report of Buyout Interest

Legg Mason Inc., the money manager searching for a new chief executive officer, rose the most in almost eight months after a report said two buyout firms have shown an interest in taking it private. Photographer: Andrew Harrer/Bloomberg

Legg Mason Inc. (LM:US), the money manager searching for a new chief executive officer, rose the most in four months after a report said two buyout firms have shown an interest in taking it private.

Legg Mason climbed 3.2 percent (LM:US) to $26.84, the biggest gain since Sept. 11, after Reuters said today that two large private- equity investors showed interest in financing a buyout led by the Baltimore-based firm’s largest affiliates. Legg Mason’s board has refused to engage in discussions about a sale, said Reuters, citing unidentified people with knowledge of the matter.

Mary Athridge, a spokeswoman for Legg Mason, declined to comment on the report.

The company is in transition, following the departure of Chief Executive Officer Mark Fetting, who stepped down Oct. 1 amid pressure from activist investor Nelson Peltz to improve performance and reverse redemptions. Joseph A. Sullivan, head of global distribution, is serving as interim CEO while the board looks for a permanent successor to Fetting.

The company’s largest bond affiliate is Western Asset Management Co., which is seeking more control of its fund sales, a person familiar with the matter said in November.

To contact the reporter on this story: Alexis Leondis in New York at aleondis@bloomberg.net

To contact the editor responsible for this story: Christian Baumgaertel at cbaumgaertel@bloomberg.net


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Companies Mentioned

  • LM
    (Legg Mason Inc)
    • $54.45 USD
    • -0.06
    • -0.11%
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