Friday, 26 December 2014
Last updated 2 days ago
Feb 24 2011 | 9:53am ET
Citadel Investment Group, twice E*Trade Financial Corp.'s white knight in dark times, is backing further away from the troubled online brokerage.
The hedge fund giant plans to sell most of its shares in the company, of which it is both the largest shareholder and largest creditor. But Citadel, which currently owns just under 10% of E*Trade's common stock, still owns convertible debt that could bring its stake in the company up to nearly 30%.
Indeed, after the planned sale of as many as 27.6 million shares, Citadel is likely to convert some of that debt into equity.
Citadel has twice bailed out E*Trade, although the firm has over the past two years sold off large chunks of its stake in the company. In April, it dumped some 172 million shares in a similar secondary offering. As in that offering, E*Trade will receive none of the proceeds from this one.
Last year, Citadel's order-flow deal with E*Trade, struck when the hedge fund first threw the company a cash lifeline, expired.
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.