Legg Mason Extends Gains On Trian Pact

Legg Mason Inc (NYSE: LM) extended its gains Monday after announcing late last week an agreement enabling its largest shareholder to boost its holdings to 13 percent.

Legg Mason was up more than 2 percent recently, changing hands at $53.98. The shares have gained nearly 8 percent since the company its agreement with shareholder Trian Fund Management.

Trian chief Nelson Peltz resigned after five years on Legg Mason's board December 2 when his fund held a reported 11.3 percent stake in Legg Mason.

Peltz, who helped oust Legg Mason Chief Executive Mark Fetting in 2012, said recently Trian would remain an "engaged shareholder" at Legg Mason.

Legg said December 13 it agreed to waive restrictions related to state rules in Maryland and enable Trian to boost its stake up to 13 percent.

Trian's stake may exceed 13 percent as a result of subsequent share repurchases and other similar activity by Legg Mason, the company said.