Following yesterday's speculation, Citi analyst William Katz says a takeover of Legg Mason (LM) is unlikely. The analyst adds, however, that he can't completely rule out the possibility of a deal. Investors will likely focus on a potential suitor from Asia given the recent Fortress (FIG) announcement and China-based Shanda's sizable stake in Legg Mason, Katz tells investors in a research note. Merger speculation in the Asset Managers space could be incrementally positive for WisdomTree (WETF) and Waddell & Reed (WDR), two of the most likely "sale" candidates, the analyst contends. Katz has a Buy rating on Legg Mason with a $39 price target