Stock Alert: Franklin Resources Gains Almost 8%

(RTTNews) - Shares of Franklin Resources, Inc. (BEN), a global investment management organization operating as Franklin Templeton, are rising almost 8 percent in the morning trade on Tuesday, at $26.25. The stock has traded in a range of $23.96 to $35.82 in the past 52 weeks.

Tuesday, Franklin Resources said it agreed to acquire rival asset manager Legg Mason, Inc. (LM) for $50.00 per share of common stock, in an all-cash transaction of $4.5 billion. Franklin Resources will also assume about $2 billion of Legg Mason's outstanding debt.

Franklin Resources noted that the acquisition of Legg Mason and its affiliates will establish the company as one of the world's largest specialized global investment managers, with a combined $1.5 trillion in assets under management or AUM and presence in key geographies.

Legg Mason and its multiple investment affiliates collectively manage over $806 billion in assets as of January 31, 2020. The transaction, approved by the boards of directors of both companies, is expected to close no later than the third calendar quarter of 2020.