Ameritrade said its board of directors met to confirm its support of the firm’s growth strategy, with founder Joe Ricketts declaring his confidence in the management team.
According to media speculation, New York-based E*Trade has publicly revealed that it had made an unsolicited bid of about $5.5bn for the company last week. Ameritrade shareholders were offered 47.5% of a combined entity, and $1.5bn in cash. Industry observers believe this offer would value Ameritrade at $5.6bn, or $10.28 a share, while a merger might have produced $650m in cost savings.
Reports are also suggesting that Ameritrade itself is currently in talks to buy TDWaterhouse, an online trading services firm, from Toronto Dominion Bank.