TD Ameritrade’s Tomczyk: We have ‘firepower’ for an acquisition
E*Trade Financial Corp. shares gained the most since December after TD Ameritrade CEO noted that his firm could pull off a major deal
E*Trade Financial Corp. shares gained the most since December after TD Ameritrade Holding Corp. Chief Executive Officer Fred Tomczyk told Reuters his company has the “firepower” for an acquisition.
TD Ameritrade may use some of its $1.1 billion in cash for an acquisition, dividend or share buyback, he said in an interview with Reuters. He said the company probably won’t act until after September.
E*Trade, the New York-based online brokerage that’s been unprofitable for two years, is “on a better footing today,” Tomczyk said in the Reuters interview.
E*Trade shares climbed 7.1 percent to $1.82 at 10:44 a.m. in New York, and advanced as much as 8.2 percent earlier in the biggest intraday rally since Dec. 18. TD Ameritrade rose 0.6 percent to $20.29. Before today, E*Trade lost 3.4 percent in 2010.
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