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(Corrects paragraph 2 to clarify that the company said the charge is in the third quarter, not fourth quarter)
Oct 31 (Reuters) - 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 business.
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)