Filed under: Deals, Rumors, TD AmeriTrade Holding (AMTD)
E*Trade (NASDAQ: ETFC) is naming its chairman, former JPMorgan (NYSE: JPM) vice-chairman Donald Layton, to be the company’s new CEO.
The stock was trading up more than 5% on the news earlier, probably because of speculation of a possible sale. The Wall Street Journal reported [subscription required] that “E*Trade and Citadel have discussed the possibility of trying to find a buyer for the home-equity portfolio, which would lift a tremendous burden off E*Trade and could pave the way for a sale of the entire company, according to people familiar with the matter.”
But Mr. Layton told the Journal that selling the home-equity portfolio is not an option right now.
I think investors should, as always, be extremely cautious about buying shares in the company on takeover speculation. E*Trade’s woes — and declining share price — are hardly an unknown entity given its status as a poster child of subprime stupidity. The fact that Ameritrade (NASDAQ: AMTD) and other well-capitalized competitors, which had expressed interest in acquiring E*Trade before its precipitous decline in value aren’t stepping up with an offer, tells me all I need to know: there’s really no reason to think a deal is coming any time soon.
Continue reading A takeover at E*Trade? Don’t bet on it.
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