TD Ameritrade Eyes Acquisitions: Report
OMAHA, Neb. (
) --
TD Ameritrade
(AMTD) - Get Report
is looking to use its $1.1 billion in cash for an acquisition, a dividend or a share buyback, but it's unlikely to act on any of those three options before the end of its fiscal year in September, CEO Fred Tomczyk told
Reuters
.
"There are lots of potential acquisitions and we've got a lot of firepower, so we do look at that," Tomczyk said.
Tomczyk reckons that although most of the big players are back on their feet, there are still lots of people with problems. The discount brokerage had told
Reuters
in November that it was eyeing smaller rival
E*Trade
(ETFC) - Get Report
.
"We're interested in any deal that makes strategic and financial sense," the CEO said.
"E*Trade is on a better footing today than they were a year or two ago, no question. But that doesn't mean its over," he added. "They still have their issues to work out. They're through the worst."
Disclosing plans of paying a dividend, Tomczyk said, "There will come a time when I think a dividend absolutely makes sense for us. We're generating so much cash, I think there comes a point in time where it's not credible to not have one."
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