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Article: Acquisition of Citi unit derailing Legg Mason; Stock price victimized by integration snafu.(News)
- Article from:
- Investment News
- Article date:
- May 29, 2006
CopyrightCOPYRIGHT 2006 Crain Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: Frederick P. Gabriel Jr.
BOSTON - Legg Mason Inc.'s recent acquisition binge has Wall Street worried.
Since exchanging its broker-dealer operations for Citigroup Inc.'s global-asset-management business in December in a deal worth $3.7 billion, Legg Mason has put its shareholders through a wild and woolly ride that some say could get worse before it gets better.
Legg Mason's stock, which closed Wednesday at $97.25, was down 18.6% year-to-date and off 28.6% from a 52-week high of $136.21 in February. That year-to-date performance is one of the worst among publicly traded asset managers, according to Morningstar Inc. in Chicago.
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