Legg Mason says reorganization steps to cost $20 million

BOSTON, Sept 11 Wed Sep 11, 2013 12:41pm EDT

BOSTON, Sept 11 (Reuters) - Legg Mason Inc on Wednesday said reorganization steps will cost it a total of $20 million for severance and other expenses in the quarters ending in September and December.

The moves are the latest by Joseph Sullivan, named chief executive of the Baltimore-based asset manager in February, as he tries to restore the company as one of the top U.S. mutual fund firms.

Sullivan has made changes like selling to its managers a small wealth-management unit, Private Capital Management. In August, Legg Mason also said it would shut down an international equities unit, Esemplia.

Shares in Legg Mason were down 1 percent to $34.52 in midday trading.

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