E-Trade Rallies After Reports Spur Takeover Talk

NEW YORK (AP) — E-Trade Financial Corp. shares surged late Wednesday after media reports fed speculation that rival online broker TD Ameritrade Holding Corp. could make a bid for the company.

Shares of New York-based E-Trade jumped 9 percent to their highest close in a month, tacking on 14 cents to $1.69. Shares had been only modestly higher before reports surfaced that TD Ameritrade CEO Fred Tomczyk said at a conference he would consider a deal with E-Trade.

In after hours trading, E-Trade shares added another 2 cents to $1.71, while TD Ameritrade shares slipped 17 cents to $21.09.

Kim Hillyer, a spokesperson for TD Ameritrade, confirmed that Tomczyk said he would entertain a deal with E-Trade when asked about that company specifically during a conference, but that his response reflected the company's general view toward M&A.

"If there is an opportunity in the marketplace, whether it would be with that firm or another firm, we would consider it if it made sense strategically," Hillyer said.

TD Ameritrade has made 10 acquisitions since 2001. The most recent deal closed in June, when the Omaha, Neb.-based firm bought thinkorswim Group Inc. for $606 million.

A representative of E-Trade was not immediately available for comment.