Funds Fire Another Shot at TD Ameritrade

"Specifically, we believe that Toronto-Dominion CEO and TD Ameritrade board member W. Edmund Clark has been allowed to play a significant role in [merger] discussions, which we believe undermines the integrity of the process given the clear conflicts between Toronto-Dominion's strategic interest in TD Ameritrade and the interests of all other stockholders," the initial letter said. "The board must remove Mr. Clark from this role and empower the independent directors to reach out to and lead discussions with potential strategic partners."

Jana and SAC also said Thursday that they have filed a request to view TD Ameritrade's books and records related to its exploration of strategic combinations. The hedge funds had previously said they were looking to do so.

A TD Ameritrade spokeswoman said the company is reviewing the letter.

The company has said it is always looking for merger partners, but that it would be "deliberate" with its acquisition strategy. In addition, it said it wouldn't limit deals to other online brokers.

Shares of TD Ameritrade were up 4 cents to $20.18.

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