Toronto-Dominion Bank Financial Group and Ameritrade Holding Corporation today confirmed that are in discussions regarding a potential transaction involving TD Waterhouse USA.
The two companies said that they will not make any further comments on the subject until an actual agreement is made. There are no assurances that discussions between the companies will result in any transaction or on what terms a transaction may take place.
TD Waterhouse Group, Inc., which is a wholly-owned subsidiary of The Toronto-Dominion Bank, and part of TD Bank Financial Group, currently has 3.2 million active customer accounts. It is headquartered in Toronto, Canada, and has offices around the globe.
Ameritrade has been operating for 30 years, developing products and for investing and portfolio management needs of individual investors and institutional distribution partners.
The Financial Times hinted that Ameritrade might buy TD Waterhouse from TD Bank Financial group for somwhere between $2 billion and $3 billion. The companies have not confirmed this, however.
In early May, Ameritrade revised its earnings forecast due to difficult market conditions. The company posted a 30% decrease in monthly volume.
“We’re seeing lackluster market performance and feel retail investors are waiting for economic conditions to improve. Therefore, we feel it is prudent to adjust our earnings guidance at this time,” said
Ameritrade CEO Joe Moglia.
Today in early trading, Ameritrade shares went up 43 cents to $14.82, while shares of Toronto Dominion Bank had an increase of 96 cents, reaching $42.31.
Chris is a staff writer for Murdok. Visit Murdok for the latest ebusiness news.
