Legg Mason vs Citi trade off

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Jul 6, 2005 9:38 am

Legg will give up the broker dealers for Citi's  asset management...


Some kind of trade.


Who do you think is getting the best deal? (without looking at Legg stock prices :)


I have heard that the "deal" Smith Barney has for their new Brokers isn't all that great but haven't heard the details...


Jul 6, 2005 11:35 pm

It's a cookie-cutter, one-size-fits-all, low-ball offer.


Jul 15, 2005 11:21 pm

The main problem with the deal is choice.  Many Legg brokers have a large part of their assets tied up in Legg Mason Funds which are not going to be portable for three years.  They said reason for the deal was to seperate asset management and distribution in which they must have forgotten about the legg funds.


The retention bonus's is something like this  >250 10%  >400 25% >1000 35%  <1000 50%  (don't think my numbers are exact, going from memory)  but it is 1/2 cash up front and 1/2 stock on a four year cliff schedule.


personally, my hands are tied due to large% of my book is tied up in legg funds with capital gains that would not be in my clients interest to liquidate.