ambassador follows a series of recent visits to Damascus by high-level U.S. military and diplomatic delegations.(Reporting by Deborah Charles and Arshad Mohammed; editing by Chris Wilson) Barack Obama. * Legg Mason shares rise on activist rumor Stocks  |  Funds News  |  ETFs News * Telegraph reports company to face challenge (Adds details of shareholding, analyst comment) BOSTON, June 24 (Reuters) – Legg Mason Inc (LM.N) shareswere up more than 10 percent on Wednesday after a Britishnewspaper reported the Baltimore asset manager could face ashareholder challenge. Citing unnamed “market players,” The Telegraph reported onits website that activist U.S.

investor Nelson Peltz plans tobegin a campaign against the management of Legg Mason and hassecretly bought 9 percent of the company A call to Peltz’s office was not immediately returned. Aspokeswoman for Legg Mason said it does not comment on marketrumors. As of March Peltz owned less than 1 percent of Legg Mason,one of the world’s largest asset managers, according to thecompany. But the rumor circulating that he has increased his stakeand is looking to continue doing so has driven up Legg’sshares, said William Lefkowitz, options strategist at brokeragefirm vFinance Investments in NY. “His usual MO is to try to gain a few board seats andeventually create value for shareholders,” Lefkowitz added. Peltz is known for his bruising battles with corporatemanagement, including his 2007 fight with Cadbury Schweppesthat resulted in it spinning off a beverage division.

If Peltz is now targeting Legg for a breakup, it would comeamid a larger reshuffling of the asset-management industry,which faces a round of mergers and consolidation. Just thismonth BlackRock Asset Management of New York bid $13.5 billionfor Barclays Global Investors. Meanwhile, Legg has come through a tough period after itwas forced to prop up money market funds that held toxicassets. The company lost $1.9 billion for the fiscal year endedMarch 31, which ordinarily would have meant no bonus pool.Nonetheless, directors awarded Legg Mason chief executive MarkFetting $6.55 million for the year, a 39 percent increasecompared with the previous year, citing the extraordinaryevents of the period.(Reporting by Ross Kerber; editing Leslie Gevirtz and AndreGrenon) Stocks Funds News ETFs News. ‘Are pixels greener than paper?’ Down to Earth Brochure, ‘Pixels vs.