Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Quick Hits: Legg Mason Goes Private?

By

Brief scrutiny of today's headlines.

PrintPRINT

Asset manager Legg Mason (LM) is reviewing ways to go private, the New York Post reports.

Citing "people familiar with the situation," the newspaper says Legg Mason has been reviewing a move that could involve one or more private equity investors, including Kohlberg Kravis Roberts & Company. The private equity firm would buy Legg Mason and spin off most of its funds.

A spokesman for Legg Mason denied the report, saying it was "categorically untrue." KKR declined to comment.

The Post says obstacles may emerge to block the deal -- at least for now -- or Legg Mason could wait for the market turmoil to subside before making a decision.

Legg Mason has about $1 trillion in assets under management in a range of mutual and hedge funds. It's been hit hard by the souring of mortgage securities and wavering investor confidence.

Last week, Legg Mason said it would inject $630 million to help support one of its money-market mutual funds to protect against losses on asset-backed commercial paper. This boosted the company's shares, but the stock is still down about 50% for the year.

In the last 6 months, Legg Mason has raised about $2.4 billion to shore up its balance sheet. That includes $1.25 billion from a KKR affiliate, which granted the firm convertible shares in Legg Mason. KKR's investment allowed it to put KKR member Scott Nuttall on Legg Mason's board.

Legg Mason, based in Baltimore, was founded in 1899.


Is there another Bear Stearns out there?
Minyanville's Buzz & Banter- 14 day FREE Trial
No position on stocks mentioned.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
PrintPRINT
 
Featured Videos

WHAT'S POPULAR IN THE VILLE