Shanda Group To Increase Stake In Legg Mason; Names Two Members To Board

(RTTNews) - Legg Mason Inc., (LM) announced an agreement with Shanda Group, Legg Mason's largest shareholder, that includes a commitment to appoint Tianqiao Chen, Chairman and CEO of Shanda Group, and Robert Chiu, President of Shanda Group, to the company's Board by June 1, 2017. Chen will be joining the Board as the Vice Chairman. The agreement contemplates Shanda Group purchasing additional shares of Legg Mason common stock in the future to increase its investment up to 15% of outstanding common stock. Shanda Group has agreed to invest at least $500 million in investment products with Legg Mason affiliates.

Shanda Group is Legg Mason's largest shareholder, owning approximately 10% of the company's outstanding common stock.