Saturday, 30 August 2014
Last updated 21 hours ago
Aug 9 2011 | 1:23pm ET
Citadel Investment Group and E*Trade Financial have reached something of a ceasefire.
E*Trade, in which Citadel is the largest shareholder, has agreed to consider a sale on the hedge fund's terms. In exchange, Citadel said it would shelve its fights to have two directors thrown off the company's board of directors and to force a special shareholder meeting.
"We trust this new process, involving all directors, will be more transparent and objective, and look forward to the board and its adviser, Goldman Sachs & Company, working quickly to fulfill this crucial mandate," Citadel wrote in a letter to E*Trade.
The hiring of Goldman—and firing of JPMorgan Chase—was crucial to the cooling of tensions between both sides, as the bank was Citadel's preferred adviser. Also important was Citadel's agreement to set up a committee made of three independent directors to evaluate strategic alternatives; board entrenchment has been a frequent bone of contention for Citadel, whose founder, Kenneth Griffin, sits on the company's board himself.
The special committee will be composed exclusively of directors who joined the board over the last three years.
E*Trade also agreed to consider another of Citadel's demands—changing its board structure—at its regularly scheduled annual meeting last year.
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...