Citigroup acquired the shares of Legg Mason when it swapped nearly its entire asset management unit to the Baltimore firm in a $3.7 billion deal on Dec. 1, 2005. In return, Citigroup obtained Legg Mason's brokerage business.
The shares consist of 5.39 million shares of common stock and 3.61 million shares of preferred stock, which would convert into common stock upon their sale. Legg Mason would not realize any profit from the sale.
Citigroup would still own a massive block of Legg Mason shares after the sale. Reuters, however, noted that earlier last week that Legg Mason indicated that Citigroup intends to sell nearly 12.5 million shares, or about a third of its stake in Legg Mason, from time to time. Legg Mason shares were trading at $125.20 on news of the pricing decision.
The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries