Always a bridesmaid, but never a bride.

In the past few months, struggling asset manager Legg Mason has been approached by some of its senior managers and private equity firms with plans to take the struggling asset manager private, according to Reuters.

However, reporter Jessica Toonkel writes that, according to three sources, the firm’s “board has decided against exploring that option at least until the company has a new chief executive.”

Legg’s problematic walk down the wedding aisle started last September when former CEO Mark Fetting announced his resignation. The influence of commando activist investor Norman Peltz was deemed the main culprit by many experts. Meanwhile, half a dozen candidates are vying for the Fetting’s old job.

The newswire notes that “Legg Mason rode the technology boom at the turn of the century and then a enjoyed a period of good stock-picking, but has seen its fortunes wither in recent years amid choppy markets and mixed investment performance.”

One important problem noted in the Toonkel story: “the firm has been created over the years through a patchwork of deals, resulting in eight main independent asset management units, each having separate revenue sharing agreements with the parent.”

The full story can be accessed here.  

Edited by: Tommy Fernandez


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