Donít bet on a Legg Mason
, say analysts quoted by a number of news outlets.
Published reports last week
indicated that Legg had been approach by some of its own managers, and at least two private equity firms, for a possible buyout, but had been playing hard-to-get.
Yet analysts are saying that such flirtations wouldn't lead anywhere.
For example, SeekingAlpha
, notes that both Citi
analyst William Katz
and Nomuraís Glenn Schorr
both say a buyout is unlikely. Katz says it is because the transaction would be too complex. He believes former CEO Mark Fetting
left because it became clear to him that a buyout wasnít possible. Meanwhile, Schorr says that the debt is too high to allow for a leverage buyout.
In a Wall Street Journal
article, Schorr adds that Leggís fundamentlas are weak.
Meanwhile, Sandler OíNeill lowered
its rating of Legg from "Buy" to "Hold," citing similar worries over a potential buyout.
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