Tuesday, 29 July 2014
Last updated 15 hours ago
Jul 28 2011 | 12:52pm ET
A fellow hedge fund has, at one fell swoop, given Citadel Investment Group all of the support it needs to force E*Trade Financial to hold a special shareholders meeting.
Smithwood Partners' JMB Capital Partners will back Citadel's call for such a meeting. And it owns more than 1% of the troubled online brokerage, which, combined with Citadel's 9.8% stake, gives the two hedge funds enough votes to make it happen.
"Ken Griffin will get my proxy," JMB's Jonathan Brooks told Dow Jones Newswires, referring to Citadel's founder and a member of E*Trade's board of directors. "What Ken is trying to do is drive an independent process."
Citadel may yet get even more support: Omega Advisors' Leon Cooperman has said he backs Citadel's demands, but has not specifically said he'd support forcing a shareholder meeting. Omega owns about 2.4% of E*Trade's shares.
Citadel has called for E*Trade to seek a sale, get ride of two board members and do away with its staggered board structure. E*Trade this week hired Morgan Stanley to investigate the former, but has rejected the latter two demands, as well as the demand for a special meeting.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…