E*Trade

(ET) - Get Report

confirmed Thursday that it did make a proposal regarding a merger with rival online broker

Ameritrade

(AMTD) - Get Report

.

E*Trade's announcement came on the heels of Ameritrade's statement that it wasn't for sale. E*Trade said the proposal outlined a structure that would give Ameritrade shareholders 47.5% of the combined company, plus about $1.5 billion in cash.

Terms of E*Trade's proposal also included joint participation in senior management roles and representation on the board of the combined company.

"The proposed deal represents immediate value creation for shareholders of both Ameritrade and E*Trade Financial," Mitchell H. Caplan, chief executive of the company, said in a press release.

"E*Trade's business model provides Ameritrade a differentiated opportunity to take advantage of significant revenue creation by monetizing key aspects of the brokerage business through our cash management structure and by integrating customer order flow with our institutional business," the statement continued.

E*Trade said that under Caplan, the combined companies would have more than 7 million customers generating about 300,000 trades a day, with total client assets of $170 billion.

Ameritrade said earlier Thursday that it will continue to explore strategic alternatives in the online brokerage space, but does not currently consider itself for sale.