ValueBull Investor • 14 Comments
Mon, Oct. 24, 6:11 AM
- As floated on Sunday, Scottrade has been sold to TD Ameritrade (NASDAQ:AMTD) for $4B. The deal will take place in two stages, with TD Bank (NYSE:TD) first buying Scottrade Bank for $1.3B in cash, and then Ameritrade purchasing Scottrade Financial Services for $4B, or $2.7B of stock and cash net of the proceeds of the bank sale.
- Ameritrade will issue $1B in new stock (28M shares) to Scottrade, and the $1.7B in cash will include $900M of its own money, $400M in new debt, and $400M raised by selling another 11M shares to TD Bank.
- Thanks to about $450M in combined annual expense synergies, Ameritrade expects 15-20% adjusted EPS accretion in years two and three following the close. Another $300M in longer-term cost savings are hoped for as well.
- A conference call is set for 8:30 ET.
Sun, Oct. 23, 8:57 PM
- TD Ameritrade (NASDAQ:AMTD) would acquire Scottrade's brokerage operations for about $2.7B in cash and stock, and TD Bank (NYSE:TD) would pick up Scottrade's banking business for $1.3B in cash, reports Bloomberg. TD Bank owns roughly 42% of Ameritrade.
- The acquisition would be the latest in an industry which has seen a good deal of consolidation of late as players deal with slowing volumes - Ameritrade saw 425K client trades per day in August, down 21% Y/Y, and E*Trade's 144K was off 20% (though it's a tough comparison given the massive volatility in August 2015).
- Scottrade had $1.04B in revenue in 2015, according to Wells Fargo's Christopher Harris. Revenue, however, has been flat since 2014. That, along with serious health issues for co-founder and CEO Rodger Riney could be pushing along the decision to sell.
- Previously: Analyst: TD Bank could held fund Ameritrade bid for Scottrade (Oct. 20)
Thu, Oct. 20, 11:59 AM
- According to Rob Sedran and team at CIBC, TD Bank (NYSE:TD) has the necessary regulatory capital to inject about $1.5B into its minority-owned TD Ameritrade (NASDAQ:AMTD) should it pursue a purchase of rival Scottrade.
- Scottrade has reportedly put itself on the block at somewhere in the $4B range, and a report today says TD and AMTD have teamed up to put in a joint bid.
- TD owns 42% of Ameritrade, and Sedran believes the lender would want to maintain that level in the event of a Scottrade purchase.
- It would be "strategically consistent" for TD to be involved in the buy, says Sedran, noting Scottrade's banking assets could be easily absorbed the direct brokerage is a business the lender knows well and with whom it has a strong partner, and in which material synergies could be expected.
Oct. 15, 2013, 1:05 PM
- The biggest barriers to TD Bank buying Citizens are price and integration risk, says CIBC's Rob Sedran, responding to weekend speculation the Canadian lender is thinking about bidding for RBS's U.S. retail banking business. "Given the overlap with TD’s existing footprint, there is no question that such an acquisition would be a strategically attractive one, turning the bank’s already solid platform into dominant one in terms of deposit market share in the U.S. Northeast."
- Sedran does note the size of the deal - maybe as much as $13B - is too large for the Canadian market to absorb, and TD bank might need to get creative, such as a spinoff of another of its operations. He also reminds "not interested" was TD management's answer last year when asked about Citizens. What facts have changed since?
Oct. 13, 2013, 6:16 PM
- TD has long coveted Royal Bank of Scotland's (RBS) Citizens Bank, reports the Sunday Times, but its interest has grown since this summer. For its part, RBS has played it cool over its desire for a quick sale - publicly continuing to target late 2014 or early 2015 as a time frame for an IPO - but U.K. politicians (the government owns 82% of the bank) are pressing the bank and new CEO Ross McEwan to focus on domestic lending and building capital.
- Citizens Bank is estimated to be worth as much as £8B.
Mar. 13, 2013, 4:20 PM
Mar. 6, 2013, 2:27 PM
Take a number if you have interest in Bankia's City National Bank of Florida. Among those expected to put in a bid are TD, BBT, PNC as well as two healthier Spanish lenders. Goldman is leading the sale and is asking $900M-$1B, while sources say $600M-$800M will get it done. "It is a nice little property ... but it is not a must-have," says one source, playing it cool.| Mar. 6, 2013, 2:27 PM
Dec. 18, 2012, 2:53 PMPNC Financial, TD Bank, BB&T (BBT) and BankUnited (BKU) are among the potential bidders as Spain's troubled Bankia looks to raise cash by putting its Florida unit - City National Bank of Florida - up for sale. With 26 branches, $4.3B in assets, and a loan book doing quite well for Florida, the business could fetch in the area of $500M. | Dec. 18, 2012, 2:53 PM
Dec. 6, 2012, 7:06 AM
Oct. 22, 2012, 12:57 PMRoyal Bank of Canada (RY) may have beaten out TD Bank (TD) in a weekend bidding war to grab Ally Financial's Canadian operations in a deal valued at more than $4B, according to sources. The situation is fluid, with the possibility of an announcement today or even TD coming in with a better offer. | Oct. 22, 2012, 12:57 PM | 1 Comment
Aug. 17, 2012, 6:35 AM
BankUnited (BKU) is considering offers of around $25 a share from Toronto-Dominion Bank (TD) and BB&T (BBT), The NY Post reports, although the Florida-based firm is not in formal negotiations. The bids are below BankUnited's close of $25.70 yesterday and its asking price of $27-$29.| Aug. 17, 2012, 6:35 AM
Aug. 3, 2012, 7:43 AMRBS - continuing to lose money, beset by the Libor scandal, and with the government threatening nationalization - may have to unload its U.S. commercial banking operation (Citizen's Bank), reports the NYPost. TD Bank (TD) was among the interested parties, but the two were far apart in price, say sources, and talks are not currently active. | Aug. 3, 2012, 7:43 AM
Feb. 17, 2012, 5:17 AMAlly Financial is reportedly considering a sale of all or part of its auto lending and banking businesses; an IPO is still a possibility, but is looking increasingly remote. Logical buyers for the various pieces include JPMorgan (JPM), Toronto-Dominion (TD), Wells Fargo (WFC) and GM (GM). | Feb. 17, 2012, 5:17 AM | 2 Comments
Feb. 2, 2012, 2:12 PM
Jan. 18, 2012, 6:20 AM
Toronto-Dominion Bank (TD) and BB&T (BBT) reportedly submitted preliminary bids late yesterday to buy BankUnited (BKU), which was put up for sale last week and is expected to fetch over $2B. The suitors want to expand in Florida despite its real-estate turmoil and other problems.| Jan. 18, 2012, 6:20 AM
Nov. 22, 2011, 1:45 PMFollowing a tumultuous autumn, Jefferies (JEF +0.1%) CEO Richard Handler is "weighing whether the firm can remain independent," according to Fox Business' sources. One source thinks Handler may try to merge Jefferies with an asset management firm, while Dick Bove believes a Canadian bank such as RY or TD is a likely suitor. (more) | Nov. 22, 2011, 1:45 PM