(Corrects paragraph 2 to clarify that the company said the
charge is in the third quarter, not fourth quarter)
Oct 31 Asset manager Waddell & Reed Financial
Inc said it agreed to sell its Legend investment unit to
First Allied Holdings Inc to focus on its core asset management
The company took a non-cash charge of $42.4 million in the
third quarter, related to the write-down of Legend as a result
of the sale.
Waddell & Reed acquired The Legend Group, a mutual fund
distribution and retirement planning company held privately
earlier, for about $75 million in February 2000.
The sale was announced as the company reported a net income
from continuing operations, excluding Legend, of $52.1 million,
or 61 cents per share, up from $39.4 million, or 46 cents per
share, a year earlier.
Total operating revenue was up 5 percent to $293.4 million.
Waddell & Reed, known for its Ivy fund family, ended the
quarter with $95 billion in assets under management.
Shares of the Overland Park, Kansas-based company closed at
$32.62 last Friday on the New York Stock Exchange.
(Reporting by Ashutosh Pandey and Aman Shah in Bangalore)