E*TRADE (ETFC) Falls On Decision Not to Sell
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Shares of E*TRADE Financial (NASDAQ: ETFC) are under pressure after its Board of Directors announced that it has concluded the previously announced review of strategic alternatives.
The strategic review process for the online broker began in July and was designed look over all strategic alternatives for the company, including a possible sale with a primary focus on maximizing stockholder value. Inline with the recommendation from Goldman Sachs (NYSE: GS), the company's financial advisor, the Board unanimously determined that the continued execution of the company's business plan is currently the best alternative for increasing stockholder value.
"Following this review by our Board, the management team will continue to execute on our strategy designed to create value for both our stockholders and our customers," said Steven Freiberg, Chief Executive Officer and Interim Chairman. "We will remain focused on delivering the best investing experience to our customers, strengthening our brokerage business, continuing to improve the performance of our loan portfolio and enhancing our franchise."
Potential bidders for E*TRADE were said to include TD Ameritrade (Nasdaq: AMTD) and Charles Schwab Corp. (Nasdaq: SCHW), among others.
Shares of ETFC opened down roughly 4 percent on the day when the DOW is up 1.51 % and the S&P is up 1.4 perce
The strategic review process for the online broker began in July and was designed look over all strategic alternatives for the company, including a possible sale with a primary focus on maximizing stockholder value. Inline with the recommendation from Goldman Sachs (NYSE: GS), the company's financial advisor, the Board unanimously determined that the continued execution of the company's business plan is currently the best alternative for increasing stockholder value.
"Following this review by our Board, the management team will continue to execute on our strategy designed to create value for both our stockholders and our customers," said Steven Freiberg, Chief Executive Officer and Interim Chairman. "We will remain focused on delivering the best investing experience to our customers, strengthening our brokerage business, continuing to improve the performance of our loan portfolio and enhancing our franchise."
Potential bidders for E*TRADE were said to include TD Ameritrade (Nasdaq: AMTD) and Charles Schwab Corp. (Nasdaq: SCHW), among others.
Shares of ETFC opened down roughly 4 percent on the day when the DOW is up 1.51 % and the S&P is up 1.4 perce
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