Hedge Funds Rattle Ameritrade
Tuesday, June 12, 2007 : PermalinkStreet.Com – Two activist hedge funds say the time for TD Ameritrade ( AMTD – Cramer’s Take – Stockpickr ) to sell itself is now. The funds, S.A.C. Capital Advisors and Jana Partners , have taken an8.4% stake in the Omaha, Neb., online broker.
They called Friday for the second time in a week on Ameritrade to sell itself to either Charles Schwab or E*Trade Financia .
“Quite frankly, we fail to see how an unbiased review could leave any doubt that the ‘right time’ to pursue such a combination is now,” the hedge funds say in a letter to Ameritrade and accompanying press release. “This is particularly true given that the company has now completed its integration of TD Waterhouse and that the currently favorable industry environment for transactions will most assuredly not last forever, creating the real risk that if the board continues to wait it will have permanently squandered this opportunity.”