Franklin Resources to buy Legg Mason in $4.5 billion deal
Merger forms financial company with combined $1.5 trillion in assets under management
SAN MATEO, Calif. — Franklin Resources is buying competitor Legg Mason for $4.5 billion, creating a financial company with a combined $1.5 trillion in assets under management.
Franklin Resources Inc., which operates as Franklin Templeton, said Tuesday that it will pay $50 for each Legg Mason Inc. share. It will also assume about $2 billion in outstanding debt.
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The deal strengthens Franklin Templeton’s presence in key geographies and creates an investment platform that's well balanced between institutional and retail client assets under management.
FRANKLIN RESOURCES IN TALKS TO BUY LEGG MASON
Nelson Peltz's Trian Fund Management LP and funds managed by it, own approximately 4.5 percent of Legg Mason's outstanding stock and have entered into a voting agreement in support of the transaction. Shares of Legg Mason jumped more than 20 percent before the opening bell after the holiday weekend.
The combined company will operate as Franklin Templeton. The deal is expected to close no later than 2020's third quarter.