Join        Login             Stock Quote

Legg Mason (LM), Permal To Buy Fauchier Partners From BNP Paribas Investment Partners

 December 13, 2012 09:16 AM

(By Balaseshan) Legg Mason Inc. (NYSE: LM) and affiliate Permal have agreed to buy Europe-based manager of funds of hedge funds, Fauchier Partners, from BNP Paribas Investment Partners for undisclosed sum.

The transaction is expected to be accretive to Legg Mason's earnings in the first year, reflecting Legg Mason's ongoing commitment to create shareholder value.

Fauchier Partners will be combined with Permal, an alternative asset manager, to create an institutionally focused platform (Group) with about $24 billion in assets under management, offices in nine locations around the world, and a global investment team based in New York, London, Paris and Singapore.

[Related -April 22 Breakout Trend Day Breadth Update and Stock Scan]

Permal and Fauchier Partners bring together two leading institutional businesses, with a global investment reach and little crossover, operating in different markets and specializing in different areas.

With extensive pension fund and insurance clients in Europe, as well as Asia Pacific, Fauchier Partners also adds significant presence and capabilities to Permal's already well established U.S. institutional business.

"This transaction significantly expands Permal's institutional business, creating a global institutional capability across geographies and client profiles. The strength of this combined platform will be an important driver of Permal's future growth as clients in the alternatives sector increasingly look for providers with size and scale," said Joe Sullivan, Interim Chief Executive of Legg Mason.

[Related -Stock Upgrades And Downgrades: BRKR, CSCO, JNPR, LM, ORCL, WSM, YHOO]

Concurrently with Permal's acquisition of Fauchier Partners, Legg Mason also said in a Form 8-K filing that it has modified its employment and other arrangements with the management of Permal Group.

Legg Mason also said on December 12 it concluded that it will take aggregate non-cash impairment charges of $650 million to $750 million ($460 million to $550 million after net tax benefits) for impairment of two significant indefinite-life fund management contract intangible assets.

On December 12, the Legg Mason Board of Directors approved an amendment to the payment date for the company's quarterly cash dividend on its common stock of $0.11 per share. The dividend will now be payable on December 28, 2012, rather than the previously announced payment date of January 7, 2013. No changes have been made to the record date of December 12.

LM closed Wednesday's regular session down 1.20% at $25.45. The stock has been trading between $22.36 and $29.49 for the past 52 weeks.



Post Comment -- Login is required to post message
Alert for new comments:
Your email:
Your Website:

rss feed

Latest Stories

article imageAutomating Ourselves To Unemployment

In this current era of central planning, malincentives abound. We raced to frack as fast we could for the read on...

article imageFed: Waiting For June… Or Godot?

The Federal Reserve left interest rates unchanged yesterday, as widely expected. But the possibility of a read on...

article imageThe Single Best Place To Invest Your Money For Retirement

It was never supposed to be this daunting. At least that's what we were read on...

article imageNegative Blowback From Negative Interest Rates

The Federal Reserve is widely expected to leave interest rates unchanged today. But perhaps standing pat read on...

Popular Articles

Daily Sector Scan
Partner Center

Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.