Legg Mason, Citigroup Push Back Business Swap

Although Legg Mason and Citigroup had originally set Nov. 1 as the date for swapping their respective brokerage and mutual fund businesses, a deal worth a total of $3.7 billion, in light of some resistance from mutual fund shareholders and management complications, the companies now do not anticipate completing it until December, Knight Ridder reports.

In the interim, the companies are planning to hold a mutual fund shareholder meeting in New York this Friday, to try and convince investors of new management agreements in connection with Legg Mason's assumption of $437 billion in assets from Citigroup in exchange for its brokerage business.