Legg Mason shares were trading at $31.75, up 0.57%, as of 11:09 am on Tuesday.
The transaction closed on Monday, said Legg Mason spokeswoman Mary Athridge.
Nelson Peltz's (pictured) Trian sold 10.5 million shares at $32 per share, according to a regulatory filing. Trian continues to own 513,743 shares.
"Having a shareholder like Trian is good," Gabelli & Co. stock analyst Mac Sykes told TheStreet on Tuesday. "They tend to be active and they have good long-term results. Not having them aligned with the shareholder base is a negative."
However, "having a Chinese investor may be helpful for [Legg Mason's] expansion, distribution and opportunities in Asia," Sykes said.
Shanda started out as an online game company called Shanda Interactive in 1999. The company later spun off the gaming business and became an investment group. Shanda focuses on value investment opportunities in the financial services, technology and healthcare services industries.
"We are pleased to welcome Shanda as a long-term strategic shareholder," said Legg Mason chairman and CEO Joseph A. Sullivan in a statement. "We look forward to benefiting from their expertise in important areas of growth for us. We want to express our appreciation for Trian Partners, with whom we have had a long-term and constructive partnership during a period of significant change in our company and industry."
Citigroup served as placement agent and exclusive financial adviser on the transaction.
In October 2009, Peltz was elected to Legg Mason's board. At the time, Trian owned 6.95 million shares, or about 4.3% of Legg Mason's stock.
Peltz resigned from Legg Mason's board in December 2014. Trian at the owned about 11.3% of Legg's stock. During the time he was on the board, Legg Mason made senior management and board changes, and reduced overhead, increased cash flow and return more than $2 billion of capital to shareholders.