NEW YORK CITY-Citigroup signed a definitive agreement to sell substantially all of its asset management business in exchange for the broker-dealer business of Legg Mason Inc. The deal includes approximately $1.5 billion of Legg Mason’s common and convertible preferred shares and approximately $550 million in the form of a five-year loan facility provided by Citigroup Corporate and Investment Banking. The total value is approximately $3.7 billion with Citigroup expected to receive an after-tax gain of approximately $1.6 billion at closing.

“We have been assessing our options for the asset management business and have found, in Legg Mason, a partner with an excellent product set that both complements and enhances our existing product offering to our customers,” says Citigroup CEO Charles Prince.

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