E*Trade Financial Corp's largest investor, Citadel LLC is in the process of selling off its interests in the firm. The sale would mark the end of a highly contentious but at the same time highly profitable partnership.
The Chicago based hedge fund bailed out the discount brokerage and banking company back in 2007. The sale would comprise 27.4 million shares or the entire remaining 9.6% stake to Cjitgroup Inc through an underwritten offering expected to be completed by March 19. Citadel's founder had confirmed the sale.
According to E*Trade, there will be no shared proceeds between them and Citadel and the deal would not dilute the remaining common shares outstanding. This comes after a vigorous campaign Griffin to convince fellow board members at E*Trade to sell off. During its investment, Citadel earned around US$800 million, according to anonymous sources. The peal was back in 2009, where 40% of the common stock was fully diluted basis.
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