Asset management firm Legg Mason Inc. (LM) and affiliate Permal announced a definitive deal to acquire Fauchier Partners, an European based manager of funds of hedge funds, from BNP Paribas Investment Partners for undisclosed terms.
Fauchier Partners would be combined with Permal to create an institutionally focused platform with nearly $24 billion in assets under management, offices in nine locations across the globe, and a global investment team based in New York, London, Paris and Singapore, according to Legg Mason. The transaction, which may close in the first quarter of 2013, is likely to be accretive to Legg Mason's earnings in the first year.
Additionally, in a current report on Form 8-K filed with the Securities and Exchange Commission, Legg Mason announced that it has modified its employment and other arrangements with the management of Permal Group.
On December 12, 2012, Legg Mason concluded that it would take aggregate non-cash impairment charges ranging from $650 million to $750 million for impairment of two significant indefinite-life fund management contract intangible assets.
Legg Mason's board, on December 12, approved an amendment to the payment date for the company's quarterly cash dividend of $0.11 per share, payable on December 28, 2012, rather than the earlier disclosed payment date of January 7, 2013.
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