Reuters: Mergers News: Legg Mason looking at smaller deals, CFO says

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Legg Mason looking at smaller deals, CFO says Jun 6th 2012, 15:20 Wed Jun 6, 2012 11:20am EDT * Eyeing managers like int'l or alternative specialists * CFO Nachtwey: no major "transformational" deal on horizon June 6 (Reuters) - A newly-recapitalized Legg Mason Inc may buy smaller fund managers that specialize in areas like international investments, equities or alternative assets, a top executive said. Legg Mason Chief Financial Officer Peter Nachtwey told a financial conference that the Baltimore asset manager is in a stronger financial position after an agreement last month to buy back notes it had sold to private equity firm KKR & Co LP . Investors should not expect a major acquisition, however, Nachtwey said. "You won't see us do a transformational type of deal at this stage," he said at the conference sponsored by Keefe, Bruyette & Woods. Nachtwey said the company can deploy up to $700 million in its businesses, either by buying outside managers or to use as seed capital to start new funds. He also said Legg Mason may change the structure of future deals. Traditionally Legg Mason has bought 100 percent of its affiliated asset managers and negotiated other terms like how much revenue it would share. Going forward, Legg Mason will look to buy just 80 percent of equity in smaller managers, he said. Nachtwey said the KKR executive who had served on the company's board, Scott Nuttall, will not be replaced. Nachtwey said relations are strong between management and the firm of Nelson Peltz, the activist shareholder who took a major stake in the asset manager and joined its board in 2009. Link this Share this Digg this Email Reprints

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