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E*Trade Can’t Make Shareholders Whole With Takeover: Real M&A

E*Trade Financial Corp. shareholders may only recoup 20 percent of their losses even if Citadel LLC is successful in pushing for a takeover.

Citadel, the online brokerage’s largest investor, called on E*Trade last week to explore a sale, which may fetch as much as $21 a share, Sandler O’Neill & Partners LP said. A bid at that level would mark a 62 percent premium to the stock price prior to a July 20 letter from billionaire Ken Griffin’s hedge fund. Investors would still only recover 20 percent of their losses since November 2007, when Citadel injected cash into E*Trade to help avert bankruptcy, according to data compiled by Bloomberg.