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Non-Tech : E.Schwab problems -- Ignore unavailable to you. Want to Upgrade?

To: bluejeans who wrote (739)	2/2/2000 9:07:00 AM
From: Mark Z	Read Replies (1) \| Respond to of 1401

From Yahoo!: Schwab to buy day trading firm CyBerCorp for $488 mln SAN FRANCISCO, Feb 2 (Reuters) - Charles Schwab Corp. (NYSE:SCH - news), the No. 1 U.S. discount and Internet brokerage, said Wednesday it agreed to buy day trading firm CyBerCorp Inc. in a stock deal valued at about $488 million, while adding that it will reduce certain commissions by 50 percent. San Francisco-based Schwab said it expects the transaction, which is being accounted for as a purchase, to close in the first quarter of 2000. More than 90 percent of CyBerCorp's common stockholders have agreed to vote in favor of the move, Schwab said. Under the terms of the agreement, Schwab will exchange about 13.7 million unregistered shares of its common stock for all outstanding shares, options and equity rights of CyBerCorp. ''This is cutting edge technology that has proven immensely popular with highly active investors,'' David Pottruck, president and co-chief executive of Schwab, said in a statement. ''It is a trading cockpit for full-time investors who want to view and participate in the market like an institutional trader.'' Philip Berber, founder of Austin, Texas-based CyBerCorp, will continue with the firm as chairman, while Schwab's Jim Hackley will become chief executive, Schwab said. As for Schwab's new pricing arrangements, online equity commissions for the most active retail customers will drop to $14.95 from $29.95 when more than 60 ''qualifying'' trades are made in a quarter. Commissions drop less, to $19.95, when customers exceed 30 qualifying trades per quarter, Schwab said. Customers must have $50,000 in household assets at Schwab to qualify for the new pricing. Schwab shares finished at 35-1/2 on the New York Stock Exchange Tuesday. Now...what's a 'qualifying' trade & what's the extra volume of traders going to do to CyberCorp's speed of processing? I hope Schwab doesn't destroy it. BTW, I use Schwab for options & some retirement acct activity & CyberCorp for stock trading. --------------------------------------------------------------------------------