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Article: Legg Mason to Swap Units With Citigroup; Deal Would Make Baltimore Firm One Of Largest U.S. Money Managers
- Article from:
- The Washington Post
- Article date:
- June 25, 2005
- Author:
CopyrightThis material is published under license from the Washington Post. All inquiries regarding rights should be directed to the Washington Post. (Hide copyright information)
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Legg Mason Inc. agreed to swap its 1,400 stockbrokers for
Citigroup Inc.'s mutual fund business, a $3.7 billion deal that would
complete Legg Mason's transformation into one of the largest U.S.
money managers.
With the deal announced yesterday, New York-based Citigroup would
largely exit the mutual fund business in favor of selling such funds
for others. The Baltimore-based Legg Mason would do the opposite,
concentrating strictly on managing mutual funds and other investment
products and getting out of the stock brokerage business.
The unusual transaction highlights the growing pressure on the
investment industry to break up the combined retail brokerage and
investment fund businesses that ...