Citadel Enters Plan To Sell Up to 120 Million Shares of E*TRADE (ETFC)
This morning, hedge fund Citadel Investment Group entered into a Rule 10b5-1 trading plan in connection with its holdings of E*TRADE Financial Corporation (Nasdaq: ETFC).
Citadel's plan, which is expected to conclude by the end of October, 2009, provides that a broker will sell up to 120,000,000 shares of E*TRADE common stock for Citadel in accordance with a predetermined formula. The plan, under which Citadel will exercise no further discretion or control, will permit Citadel to reduce its aggregate exposure to ETFC in an orderly manner.
Affiliates of Citadel, including Citadel Equity Fund, Ltd., maintain significant holdings in both the Common Stock and debt of ETFC, and even after expiry of the plan and assuming approval of the restructuring scheduled for a vote on August 19, will likely remain E*TRADE's largest shareholder on a fully diluted basis.
Kenneth Griffin, Citadel's President and CEO, recently joined E*TRADE's Board of Directors and will continue in that role.
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