(Reuters) - U.S. shing company (LM. N) in recent months has been close to some of the senior management personnel and private equity companies plan troubled asset management company, private, but to explore the options at least until the board of directors decided to the company has a new chief executive, three source said.
Financing the acquisition of the fund manager's largest branch leaders lead bottom, there are at least two big private equity investors have expressed an interest, but the board of directors refused to participate in this discussion, said people familiar with the situation. At least one private equity investor approached the board of directors in the last November, according to one of the source.
And the fourth largest publicly listed American asset management company, beauty fill a spokeswoman refused to comment on the report, saying, Alan lizhan expo group chairman of the board, temporary CEO Joe Sullivan declined to comment for this article.
Beauty fill shares rose 7% to $27.93 news, since April in the highest, the most active trading day 5 months. The company has $3.42 billion on the New York stock exchange market capitalization.
Private equity investment company and management personnel's identity is not clear. Also does not have any of the proposed transaction structure on any of the information. Sources do not want to give his name, because they are not permitted to speak to the press.
Beauty fill ride at the turn of the century of the upsurge of science and technology, and then a good stock selection to enjoy a period, but have seen it fate fade in recent years choppy markets and hybrid investment performance.
In many cases, the rate of return has been restored, but it also needs a few years time, to restore investor asset management companies. Even a recent quarter by September 30, check three months of capital inflows for 9.7 billion dollars, into the low profit of money market funds, almost offset the $9.5 billion investors take out Legg Mason stock and fixed income products drive.
Star fund manager bill miller, in 2012, he gave up the main capital management a string below the average level of performance, last year the CEO mark Fetting step down in the autumn. Radical investors nelson pelle,, in order to promote the change in the company, to buy the shares in the company, and has taken a seat of the board of directors.
Despite the recent quarterly inflows - Baltimore company since for the first time since 2007 - analysts have no hesitation in recommending stocks, until it can display more money into the quarter. In $26 per share, this is worth only a small part of its 2006 peak of about $130. On November 30,, the company has $64.8 billion of assets management.
And Legg Mason's part of the problem, according to have and the company and the personage inside course of study, over the years, the company has set up through the strewn at random have the transaction, in eight major independent asset management department, each have independent income and father sharing agreement.
These people said, there has been tension in some areas, such as complain from some branches, they should get more help, because their income how many, they turn over to the company's sales and marketing their money from.
Analysts said, beauty fill a private holding company, these arrangements can rework, cost reduction, and solving other problems the public's sight.
"Public asset management company's corporate structure is more bad possible format, because it set up a short-term focus, it needs to have a long-term prospects," said Neil Bathon, partner of FUSE research network, a Boston area of fund management consulting co., LTD, he refused to comment on the report, especially the beautiful cheng.
To be sure, any potential management as the dominant acquisition, also won't be an easy thing. The company's long-term debt market value ratio is 31%, far higher than trade, according to nomura securities analyst Glenn Schorr.
This makes for a private deal with more difficult, because it is usually need more debt to increase the company's balance sheet.
The change of ownership also brings a lot of uncertainty, for employees and investors. "A lot of bad things happen in the process, said:" a industry banker, he mentioned risk, institutional clients and human capital can leave.
Pelle, will support management acquisition, it is not clear. Pelle, investment companies, trillian fund management LP, this company has about 10% of the beautiful cheng, a spokeswoman said that executives trillian will not comment, citing pelle, of the role of the members of the board of directors.
The debate for a long time
Xiang "chip" mason, and finally in 1970 to become beautiful put the company's founder, one of the money manager together through acquisition for decades. Today, Legg Mason eight major branches across the array of asset class. The company's largest subsidiary, western asset management company, the manager of the $45.9 billion under management, ended September 30 is a regular income. The second largest subsidiary, kelly consultant equity unit, there are 59 billion dollars. Third, brady global stock and bond store, have 41 billion dollars.
Discussion of the problem, the United States should sell or split out one of the subsidiary company has opened and closed for many years, even in Fetting to step down, it is understood the company's three sources.
CEO since leaving, associated company will increase the pressure of company private again, according to one of the source.
Beautiful cheng has taken other measures to restructuring. In December, the company says, it is Fauchier acquisition partner, a fund - - hedge, fund company $6 billion of assets, the BNP paribas investment partners, and merge it has its own $17 billion of funds,, fund company, peja Mohr.
As the part of the deal, beauty fill said it has changed its employment and revenue sharing agreement Morse's, this may be an additional changes to solve its subordinate unit investment tensions between model.



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