Friday, 26 December 2014
Last updated 2 days ago
Aug 2 2011 | 12:32pm ET
An abortive deal to sell itself to Capital One Financial may have turned Citadel Investment Group from E*Trade Financial's most steadfast supporter into an enemy the troubled online brokerage cannot afford to have.
Citadel founder Kenneth Griffin, who sits on E*Trade's board of directors following two bailouts of the company by the hedge fund, was angered when Capital One's initial approach last fall failed to produce an actual bid for E*Trade. Griffin felt that a possible deal with Capital One hadn't been properly evaluated by the board, The Wall Street Journal reports.
In recent weeks, Citadel has gone from being publicly supportive to publicly excoriating E*Trade and its board. The hedge fund last month demanded a slew of changes at the firm and an emergency shareholder meeting; E*Trade has refused to call one, although Citadel, which owns 9.8% of the E*Trade, appears to have the votes to force one.
In its approach to E*Trade, Capital One didn't hire an investment bank, but E*Trade did, or, rather, already had. The firm asked JPMorgan Chase to advise it on Capital One's approach in addition to performing a strategic review.
The two sides never talked about a possible price, and E*Trade did not seek a potential counter-offer.
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.