Financial News Online US- Two hedge funds are pushing for Canadian online broker TD Ameritrade to merge with a rival in the latest demonstration of investor activism.
Jana Partners and SAC Capital want TD Ameritrade to merge with online broker E*Trade Financial or US mutual and retirement fund provider Charles Schwab. They called for the brokerage to set up a special committee to investigate strategic alternatives for the company, according to documents filed with the Securities and Exchange Commission.
Joe Moglia, chief executive of TD Ameritrade, said at a Sandler O’Neill conference today the company was looking at offering a broader range of services for long term investors. When he was asked why the company had not merged with E*Trade and “what are you waiting for,” Moglia said the company would only consider M&A deals if they were a suitable fit for the business.
“The risk associated with any of these trades is very, very significant and I have no problem taking a little longer if it is what is best for the company.”
According to documents filed with the SEC, the two hedge funds have a combined stake of 8.4% in the business or 50 million shares and each has sought regulatory approval to buy shares worth another $600m (€444m).
