Hedge funds urge TD to merge
Two hedge funds are pressuring TD Ameritrade to sell out to E*TRADE or Schwab, according to press reports.
Two hedge funds are pressuring TD Ameritrade Holding Corp. of Omaha, Neb. to sell out to E*TRADE Financial Corp. or The Charles Schwab Corp., according to press reports.
Principals of Jana Partners LLC and SAC Capital Advisors LLC, which own stakes in the firm, signed a letter on May 29 telling TD’s board that it needs to sell out to “take advantage of industry dynamics favoring consolidation,” according to reports.
Members of TD’s board are “standing in the way” and have “untenable conflicts of interest” the letter added.
The two hedge funds own 8.4% of TD.
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