Boston Globe- Two hedge funds that own stakes in TD Ameritrade Holding Corp. are pushing the online-brokerage firm to seek a large merger, saying that Ameritrade could boost shareholder value by joining forces with either E-Trade Financial Corp. or Charles Schwab Corp.
Such a deal would deliver large expense and revenue benefits, the funds, managed by Jana Partners and SAC Capital Advisors, said in a letter sent last week to Ameritrade’s board. The call for an Ameritrade merger comes at a time when the online-brokerage industry faces questions about growth and its exposure to the swings of the market.
The two funds own a combined 8.4 percent stake in Ameritrade and are seeking to substantially increase their position. Their letters were disclosed in a Securities and Exchange Commission filing by Ameritrade after the end of Tuesday’s regular-trading session; Ameritrade shares climbed more than 9 percent in after-hours trading.
Jana and SAC told Omaha, Neb.-based Ameritrade that the company’s board should set up a special committee “to oversee the immediate pursuit of a strategic combination.”
