Tuesday, November 21, 2006

E*TRADE (ET) Higher on Takeover Speculation Following Charles Schwab's Large Asset Sale

Shares of E*TRADE Financial Corp. (NYSE: ET) are higher for the second straight session as takeover rumors surround the name following yesterday's news that Charles Schwab (Nasdaq: SCHW) sold its U.S. Trust unit to Bank of America for $3.3 billion.

Speculation now centers around what Charles Schwab will do with the funds. According to published reports in the Financial Times, Fox-Pitt Kelton analyst David Trone suggested E*TRADE could be a good fit for Schwab. A buyback could be another alternative.

Shares of E*TRADE are up 1.9% today after rising 4.2% Monday.

Others stocks in the online brokerage sector that could see increased takeover speculation include optionsXpress Holdings Inc. (Nasdaq: OXPS), TD AMERITRADE Holding Corporation (Nasdaq: AMTD) and TradeStation Group Inc. (Nasdaq: TRAD).

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