Globe and Mail- The two hedge funds exerting pressure on TD Ameritrade Holding Corp. seem pleased with the company’s decision this week to change who is involved in preliminary merger discussions,squeezing out TD Bank, but the move may not appease the funds.
In a statement Tuesday, the hedge funds said Ameritrade took “a significant first step toward removing the harmful influence of Toronto-Dominion Bank†when it decided to remove representatives of its two largest shareholders  TD Bank and the Ricketts family  from its mergers-and-acquisitions committee.
But the funds, Jana Partners and S.A.C. Capital Advisors, said the directors who remain on the mergers committee must be free to explore possible deals without interference from major shareholders looking to protect their own interests.
“It is crucial, therefore, to ensure that the independent committee can pursue whichever strategic transaction will create the greatest long-term stockholder value, without improper influence by TD Bank CEO Ed Clark or other TD board designees,†the funds said in a letter to the company.
The Canadian bank owns about 40 per cent of TD Ameritrade as a result of Ameritrade’s acquisition of the bank’s U.S. retail securities business, TD Waterhouse USA. The second-largest Ameritrade shareholder is the family of company founder and board chairman Joe Ricketts, which controls about 21 per cent of the stock.
