Discount Brokers Rise on Schwab/TD Ameritrade Deal

By Colin Kellaher

Shares of discount brokers were on the rise Monday after Charles Schwab Corp. (SCHW) agreed to buy smaller rival TD Ameritrade Holding Corp. (AMTD) in a $26 billion stock swap.

Based on Friday's closing prices, the deal values TD Ameritrade at $52.23 a share, a roughly 8.5% premium.

But TD Ameritrade shares surged last week after CNBC reported that a takeover by Schwab was imminent, and the deal represents a premium of 26.2% to TD Ameritrade's closing price of $41.38 on Wednesday, ahead of the CNBC report.

Shares of TD Ameritrade were recently up 6.5% to $51.24, while Schwab shares edged up 1.3% to $48.84.

Shares of fellow discount brokers E*Trade Financial Corp. (ETFC) and Interactive Brokers Group Inc. (IBKR) also moved higher Monday. E*Trade shares were recently up 2.1% to $43.25, while shares of Interactive Brokers gained 3% to $49.39.

Write to Colin Kellaher at colin.kellaher@wsj.com

(END) Dow Jones Newswires

November 25, 2019 11:12 ET (16:12 GMT)

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