TD Bank Financial of Canada and E*Trade have confirmed market speculation that they are holding discussions with regard to a possible transaction regarding the US operations of TD Waterhouse's US discount brokerage.
In a statement, TD Bank says: "There can be no assurances that the discussions will lead to an agreement, nor that such an agreement, if reached, would be consummated. The companies do not intend to comment further on this subject unless an agreement is concluded or the discussions have been terminated."
Market rumours suggest that TD Bank would hold the controlling stake in a merged entity that would be run by E*Trade management. Shares in the Canadian bank rose five per cent on the news.