E*Trade and TD Waterhouse break off merger talks
19 January 2004 | 4973 views | 0
E*Trade and TD Waterhouse have abandoned negotiations that would have led to the creation of the world's largest online brokerage, after failing to agree terms over control of the combined entity.
The two firms issued a brief statement Sunday announcing the end of discussions with regard to a possible transaction that would have given the Canadian bank a 40% stake in E*Trade in return for its US discount brokerage.
"Both companies agree that while there were potential benefits to concluding a transaction that merited serious discussion, they were unable to arrive at mutually agreeable terms," the release stated.
It is understood that the negotiations broke up after the firms failed to agree terms designed to limit the control exercised by the Candian banking group in E*Trade.