Capital One Considered Purchase of E*Trade Last Year, WSJ Says

Capital One Financial Corp. considered a takeover bid last year for E*Trade Financial Corp., though an offer was never made, the Wall Street Journal reported, citing people familiar with the matter.

The failure of the negotiations helped prompt Citadel LLC, Ken Griffin’s hedge fund, to request in a July 20 statement that E*Trade arrange a meeting for shareholders to vote on hiring an investment banker and removing two directors, the newspaper reported, citing people it didn’t identify. E*Trade responded by hiring Morgan Stanley (MS) to explore a sale.

Julie Rakes, a spokeswoman at McLean, Virginia-based Capital One, didn’t immediately respond to a voice mail and e- mail requesting a response to the Journal’s story. Nor did Susan Hickey of New York-based E*Trade.

To contact the reporter on this story: Nick Baker in New York at nbaker7@bloomberg.net

To contact the editor responsible for this story: Nick Baker at nbaker7@bloomberg.net

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