Here is news on wire,
E*Trade interested in buying Ameritrade - WSJ
Mon May 9, 2005 03:34 AM ET
NEW YORK, May 9 (Reuters) - E*Trade Financial Corp. (ET.N: Quote, Profile, Research) has formally expressed an interest in buying rival Ameritrade Holding Corp. (AMTD.O: Quote, Profile, Research) in a move that could further consolidate the shrinking world of online trading, the Wall Street Journal reported on Monday.
Citing people familiar with the matter, the report said E*Trade sent a letter to Ameritrade last week with the aim of spurring merger talks.
The letter notified Ameritrade's board of E*Trade's intention to pursue a deal by signaling the price that it would be willing to pay. The Journal was unable to learn the proposed terms of the deal that would bring together two of the world's biggest players in online trading.
Analysts said such a combination could be valued by investors at $12 billion to $14 billion, taking into account cost-cutting and growth opportunities that likely would result from a deal, the report said.
Representatives for both firms declined to comment on the report.
As of Friday afternoon, E*Trade's market value stood at $4.4 billion, and Ameritrade's was $4.55 billion.
So they think stock can be priced 75% higher. |
