Laxey gets foothold in Legg

12 April 2012

ACTIVIST investor Laxey Partners has taken a strategic stake in one of the underperforming investment trusts in the Legg Mason stable. Laxey has snapped up just over 10% of LM Investors Enterprise. Shares in the trust, which invests in small firms, are at a 20% discount to their underlying assets.

News of the stakebuilding is certain to sound alarm bells within the Docklands offices of Legg Mason, part of the £110bn US group of the same name.

Legg has had problems with its investment trusts. Prices of many have fallen sharply and it recently emerged that UK boss Rebecca Thomas had quietly quit. Legg Mason denies reports of low morale.

Laxey has gained a reputation for seizing on companies that have underperformed and pressing for changes, usually by calling for special shareholder meetings.

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