UPDATE 4-Janus replaces CEO Black after sale talks
* CEO Black replaced by Tim Armour on interim basis
* Profit from continuing operations drops 76 pct
* Selling $150 mln stock, $150 mln convertible notes
* Janus approached on mergers, could not agree -- source
* Shares fall 9.2 pct to $10.14 after hours (Recasts, adds details about merger talks)
By Jonathan Stempel and Paritosh Bansal
NEW YORK, July 14 (Reuters) - Janus Capital Group Inc JNS.N abruptly replaced Chief Executive Gary Black on Tuesday, following what sources said were talks in recent months for a sale of the mutual fund company.
Black, who joined Janus from Goldman Sachs Asset Management in 2004 and became chief executive in January 2006, stepped down after he and Janus' board of directors "mutually agreed" on his departure, Janus Chairman Steve Scheid said on a conference call.
Scheid called the circumstances of Black's departure "very amicable," but repeatedly declined to elaborate. Tim Armour, 60, a Janus director and former president of Stein Roe Farnham's mutual fund unit, was named interim chief executive. Continuación...