Shearman & Sterling is representing Legg Mason, Inc. in its acquisition of the asset management group of Citigroup. 

Under the agreement, Legg Mason will acquire nearly all of Citigroup asset management’s worldwide asset management businesses in exchange for Legg Mason's brokerage and investment banking units; approximately $1.15 billion in Legg Mason stock, which consists of shares of common stock and non-voting convertible preferred stock; and approximately $550 million in the form of a loan facility provided by Citigroup's corporate and investment bank.  The value of the transaction is approximately $3.7 billion.  The transaction is expected to nearly double Legg Mason's assets under management to more than $800 billion.

Baltimore-based Legg Mason is an investment firm structured as a holding company, which provides asset management, securities brokerage, investment banking and related financial services through its subsidiaries.