Citadel To Quit E*Trade

Mar 14 2013 | 11:44am ET

After twice bailing out online brokerage E*Trade Financial, and two years after demanding changes at the company, Citadel Investment Group is getting out.

The Chicago-based hedge fund, which is currently E*Trade’s largest shareholder, will sell its remaining 27.4 million shares, worth about $323.9 million. The sale is expected to be completed by Tuesday.

E*Trade shares have rallied 32% this year.

Citadel invested $2.55 billion in E*Trade in 2007 to keep the company, which was suffering mortgage-backed securities losses, afloat. In 2011, the hedge fund called for changes at the company, winning the exit of its CEO, although not the sale it sought.

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