US asset manager Legg Mason's share price has dropped to a two-year low after a Wachovia analyst downgraded it to "underperform" yesterday, partly based on concern that Citigroup could sell its stake in the firm to make up for the bank's losses on sub-prime.

Legg Mason's share price stood at $76.02 at market close yesterday, marking a one-day fall of 2.1%. Its share price is at its lowest point since May 2005, a month before it bought Citigroup's asset management business for $3.7bn (€2.5bn).