MutualFundWire.com: Don’t Bet on a Legg Mason Buyout
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Monday, January 14, 2013

Don’t Bet on a Legg Mason Buyout


Don’t 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 Nomura’s 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 wasn’t 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 Legg’s fundamentlas are weak.

Meanwhile, Sandler O’Neill lowered its rating of Legg from "Buy" to "Hold," citing similar worries over a potential buyout.


Printed from: MFWire.com/story.asp?s=42669

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