Wednesday, 27 May 2015
Last updated 6 hours 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.
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…