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Article: E*Trade to Raise $1.2 Billion with Citadel's Help
- Article from:
- Reuters Hedgeworld
- Article date:
- June 17, 2009
CopyrightCopyright 2009 Reuters Hedgeworld. Provided by ProQuest LLC. (Hide copyright information)
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Editor's note: This version of the story, updated June 17,
recasts, adds information about a possible Citadel stake, regulator
pressure, analyst comment, loan losses and background. It also
includes analyst comment, the current Citadel stake and updated
share prices.
NEW YORK (Reuters) - E*Trade Financial Corp., a discount
brokerage under pressure from U.S. regulators to shore up its
capital, said it would raise at least $1.2 billion in a share sale
and debt swap backed by hedge fund giant Citadel Investment Group.
The transaction, which eclipses a previous capital-raising plan,
could dilute the investment of current shareholders by 40% and sent
E*Trade shares down nearly 11%.
The ...