MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication
an InvestmentWires' Publication
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MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication |
|
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 Copyright 2013, InvestmentWires, Inc. All Rights Reserved |