TD Ameritrade, Charles Schwab Shares Surge on Deal Report
November 21 2019 - 8:29AM
Dow Jones News
By Colin Kellaher
Shares of TD Ameritrade Holding Corp. (AMTD) and Charles Schwab
Corp. (SCHW) surged in premarket trading Thursday after CNBC
reported that Schwab was near a deal to buy its smaller rival.
In premarket trading, TD Ameritrade shares jumped 27%, to
$52.54, while shares of Schwab rose 11.6%, to $49.92.
Schwab is the largest publicly traded discount broker, sporting
a market capitalization of roughly $57 billion based on Wednesday's
closing price of $44.75. TD Ameritrade is next at about $22 billion
based on Wednesday close of $41.38.
CNBC, citing a source, said the discount brokers were in talks
to combine, and that a deal could be announced as early as
Thursday.
The industry has been in upheaval since the beginning of
October, when Schwab said it would eliminate commissions on online
stock trades. Rivals TD Ameritrade, E*Trade Financial Corp. (ETFC)
and Interactive Brokers Group Inc. (IBKR) quickly followed
suit.
Write to Colin Kellaher at colin.kellaher@wsj.com
(END) Dow Jones Newswires
November 21, 2019 08:14 ET (13:14 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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