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Strategies & Market Trends : The Thread Formerly Known as No Rest For The Wicked -- Ignore unavailable to you. Want to Upgrade?

To: Glenn who wrote (47192)	6/1/1999 8:44:00 AM
From: kathyh	Respond to of 90042

good morning glenn and all!! hope everyone had a fabulous weekend... back to work... found this on another thread, sounds like today may be an interesting one for brokerage stocks... on another topic... That's the answer, kathyh. i'll take all the answers i can get, but what was the question <ggg> guess i am tired this am... have a great day!! kathy :) Top Financial News Tue, 01 Jun 1999, 6:45am EDT ETrade to Buy Telebank for $1.8 Bln to Expand Into Banking, Person Says By Randy Whitestone ETrade Agrees to Buy TeleBanc Financial for $1.8 Bln (Update1) (Updates 2nd paragraph with European stock prices and adds that the purchase was reported by the Wall Street Journal in 5th paragraph.) New York, June 1 (Bloomberg) -- ETrade Group Inc., the second-largest online broker, agreed to buy TeleBanc Financial Corp. for about $1.8 billion, expanding into Internet banking, a person familiar with the transaction said. ETrade will pay 2.1 of its shares for each of TeleBanc's, valuing the Arlington, Virginia-based company at $93.45 a share. The purchase, expected to be announced today, offers a 40 percent premium to TeleBanc's close Friday of 66 1/2. Its shares rose 6.5 euros to 71 euros (US$74.05) in European trading. ETrade gained 2 1/2 Friday to 44 1/2 and rose 0.2 euro to 43.20 today. Palo Alto, California-based ETrade is buying TeleBanc to gain a more stable source of revenue than that offered by cut- rate brokerage commissions. While trading stocks over the Internet rose 49 percent during the first quarter, according to a report by U.S. Bancorp Piper Jaffray, online brokers are looking for different ways to make money should that growth slow. TeleBanc provides loans and takes deposits over the Internet and through phones and automated teller machines, avoiding the costs of a branch network. Senior management of TeleBanc will remain once the purchase is completed, the person familiar with the transaction said. ETrade and TeleBanc will account for the acquisition as a pooling of interests, reducing accounting charges that can drag on earnings. The purchase was reported in today's edition of the Wall Street Journal. ETrade, second to Charles Schwab Corp. among online brokers, rose 280 percent this year. TeleBanc stock doubled.