Asset manager stocks dip on Lehman, Merrill
By
Associated Press
September 15, 2008
|
Shares of asset managers slid Monday morning after Lehman Brothers said it was filing for bankruptcy protection and Bank of America said it would buy Merrill Lynch.
Buckingham Research analyst William Katz said the pressure on companies' shares reflected liquidation, investor flight to quality and ongoing market volatility amid the stunning news on Wall Street.
Brookfield Asset Management Inc. fell $2.08, or 6.9 percent, to $27.98, while Legg Mason Inc. sank $2.98, or 7.4 percent, to $37.42.
Investment manager T. Rowe Price Group Inc. dipped $1.86, or 3.2 percent, to $55.58 following a downgrade.
"While we continue to view (T. Rowe Price) as the premium franchise within asset management, slowing internal growth should limit multiple expansion and earnings upside in the near term," Jefferies analyst Daniel Fannon wrote in a research note.
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