The company revealed they “discovered and eliminated unauthorized code from its systems that allowed access to an internal database. The discovery was made as the result of an internal investigation of stock-related SPAM.”

They also said email addresses, names, addresses and phone numbers were retrieved from a compromised database. That database also had account numbers, dates of birth, and Social Security numbers stored in it.

Those pieces of information would be pure gold to thieves. TD Ameritrade said it has no evidence the more sensitive data had been stolen.

“TD Ameritrade was obviously targeted by cybercriminals, following the old adage: Why rob a bank, because that’s where the money is,” said Dave Marcus, security research and communications manager at McAfee Avert Labs.

“Based on TD Ameritrade’s statements the attackers most likely used old fashioned hacking, social engineering and a cocktail of malicious software including password stealing trojans and bots to pilfer the customer data.”

“We expect that it will create significant value for shareholders by generating substantial cost synergies and deliver a more diverse revenue mix by shifting to an asset-gathering model,” said Ameritrade CEO Joe Moglia. “This exciting combination builds upon Ameritrade’s strong track record as a leading industry consolidator and creates an even more robust platform for future consolidation and growth.”

The deal is worth about $2.9 billion, and the company said that it expects the acquisition to be accretive within twelve months and expects to realize about $578 million of annualized gross synergies, including cost savings and increased revenue opportunities, within six quarters after the closing. As Reuters says,

The deal follows weeks of speculation about consolidation in the sector and raises questions over the next move of rival E*Trade Financial Corp., which had pursued its own bid for Ameritrade.

But analysts said E*Trade faces an uphill battle, particularly with a large chunk of Ameritrade controlled by the company’s founding Ricketts family.

“While nothing precludes E*Trade from pursuing Ameritrade with another offer, we believe the economics of trumping the current offer are far less attractive,” said Jason Bilodeau with UBS Investment Research.

“The acquisition of TD Waterhouse U.S.A. is the right deal for Ameritrade. This opportunity accelerates our long-term investor strategy with access to branches and advice, while maintaining an industry leading pre-tax margin,” said Mr. Moglia.

The two companies expect the deal to be closed in about six months. It is still subject to approval by shareholders of Ameritrade, as well as regulatory approvals in the U.S. and Canada.

Chris is a staff writer for WebProNews. Visit WebProNews for the latest ebusiness news.

The deal is worth about $2.9 billion and will be an all stock transaction. After the deal reaches completion, the combined company will be named TD Ameritrade.

Ameritrade said that it expects the acquisition to be accretive within twelve months and expects to realize about $578 million of annualized gross synergies, including cost savings and increased revenue opportunities, within six quarters after the closing.

Ameritrade CEO Joe Moglia stated, “The acquisition of TD Waterhouse U.S.A. is the right deal for Ameritrade. This opportunity accelerates our long-term investor strategy with access to branches and advice, while maintaining an industry leading pre-tax margin.”

“We expect that it will create significant value for shareholders by generating substantial cost synergies and deliver a more diverse revenue mix by shifting to an asset-gathering model,” said Moglia. “This exciting combination builds upon Ameritrade’s strong track record as a leading industry consolidator and creates an even more robust platform for future consolidation and growth.”

Included on the combined company’s board of directors, will be Ameritrade founder J. Joe Ricketts, who is also chairman of the combined company. It will also include vice-chairman Ed Clark, the CEO of TD Bank Financial Group, Moglia, J. Peter Ricketts, president and COO of TD Ameritrade and Thomas S. Ricketts. Other members will be selected before the acquisition closes.

“This transaction is a strategic and natural one for TD Bank Financial Group, as it provides immediate value to shareholders, reaffirms our commitment to the on-line brokerage business and extends our opportunities for further growth in the U.S.,” said TD Bank Financial Group President and CEO Ed Clark.

“By having our strong TD Waterhouse U.S.A. franchise become part of Ameritrade, TD has gained a significant stake in a powerful industry leader,” Clark continued. “a stake that gives us the opportunity to actively contribute to the strategic direction as TD Ameritrade grows and strengthens the TD brand in the U.S. Consistent with our history of aligning with well-run companies, Ameritrade has a strong management team whose expertise will benefit clients and shareholders alike.”

The two companies expect the deal to be closed in about six months. It is still subject to approval by shareholders of Ameritrade, as well as regulatory approvals in the U.S. and Canada.

Chris is a staff writer for WebProNews. Visit WebProNews for the latest ebusiness news.

“The acquisition of TD Waterhouse U.S.A. is the right deal for Ameritrade. This opportunity accelerates our long-term investor strategy with access to branches and advice, while maintaining an industry leading pre-tax margin,” said Ameritrade CEO Joe Moglia.

Ameritrade said that it expects the acquisition to be accretive within twelve months and expects to realize about $578 million of annualized gross synergies, including cost savings and increased revenue opportunities, within six quarters after the closing.

“We expect that it will create significant value for shareholders by generating substantial cost synergies and deliver a more diverse revenue mix by shifting to an asset-gathering model,” said Moglia. “This exciting combination builds upon Ameritrade’s strong track record as a leading industry consolidator and creates an even more robust platform for future consolidation and growth.”

Included on the combined company’s board of directors, will be Ameritrade founder J. Joe Ricketts, who is also chairman of the combined company. It will also include vice-chairman Ed Clark, the CEO of TD Bank Financial Group, Moglia, J. Peter Ricketts, president and COO of TD Ameritrade and Thomas S. Ricketts. Other members will be selected before the acquisition closes.

“This transaction is a strategic and natural one for TD Bank Financial Group, as it provides immediate value to shareholders, reaffirms our commitment to the on-line brokerage business and extends our opportunities for further growth in the U.S.,” said TD Bank Financial Group President and CEO Ed Clark.

“By having our strong TD Waterhouse U.S.A. franchise become part of Ameritrade, TD has gained a significant stake in a powerful industry leader,” Clark continued. “a stake that gives us the opportunity to actively contribute to the strategic direction as TD Ameritrade grows and strengthens the TD brand in the U.S. Consistent with our history of aligning with well-run companies, Ameritrade has a strong management team whose expertise will benefit clients and shareholders alike.”

The two companies expect the deal to be closed in about six months. It is still subject to approval by shareholders of Ameritrade, as well as regulatory approvals in the U.S. and Canada.

Chris is a staff writer for WebProNews. Visit WebProNews for the latest ebusiness news.

Ameritrade said that it expects the acquisition to be accretive within twelve months and expects to realize about $578 million of annualized gross synergies, including cost savings and increased revenue opportunities, within six quarters after the closing.

“The acquisition of TD Waterhouse U.S.A. is the right deal for Ameritrade,” said Ameritrade CEO Joe Moglia. “This opportunity accelerates our long-term investor strategy with access to branches and advice, while maintaining an industry leading pre-tax margin.”

“We expect that it will create significant value for shareholders by generating substantial cost synergies and deliver a more diverse revenue mix by shifting to an asset-gathering model,” added Moglia. “This exciting combination builds upon Ameritrade’s strong track record as a leading industry consolidator and creates an even more robust platform for future consolidation and growth.”

The combined company’s board of directors will include Ameritrade founder J. Joe Ricketts, who is also chairman of the combined company. It will also include vice-chairman Ed Clark, the CEO of TD Bank Financial Group, Moglia, J. Peter Ricketts, president and COO of TD Ameritrade and Thomas S. Ricketts. Other members will be selected before the acquisition closes.

“This transaction is a strategic and natural one for TD Bank Financial Group, as it provides immediate value to shareholders, reaffirms our commitment to the on-line brokerage business and extends our opportunities for further growth in the U.S.,” said TD Bank Financial Group President and CEO Ed Clark.

“By having our strong TD Waterhouse U.S.A. franchise become part of Ameritrade, TD has gained a significant stake in a powerful industry leader,” Clark continued. “a stake that gives us the opportunity to actively contribute to the strategic direction as TD Ameritrade grows and strengthens the TD brand in the U.S. Consistent with our history of aligning with well-run companies, Ameritrade has a strong management team whose expertise will benefit clients and shareholders alike.”

The two companies expect the transaction to reach completion within the next six months. It is still subject to approval by shareholders of Ameritrade, as well as regulatory approvals in the U.S. and Canada.

Chris is a staff writer for WebProNews. Visit WebProNews for the latest ebusiness news.

The two companies said that they will not make any further comments on the subject until an actual agreement is made. There are no assurances that discussions between the companies will result in any transaction or on what terms a transaction may take place.

The Toronto-Dominion Bank and its subsidiaries are collectively known as TD Bank Financial Group and have been operating in Canada for 150 years. TD Bank Financial Group had C$359 billion in assets, as of a month ago. The Toronto-Dominion Bank trades on the Toronto and New York Stock Exchanges under the symbol “TD”.

TD Waterhouse Group, Inc., which is a wholly-owned subsidiary of The Toronto-Dominion Bank, and part of TD Bank Financial Group, currently has 3.2 million active customer accounts. It is headquartered in Toronto, Canada, and has offices around the globe.

Ameritrade has been operating for 30 years, developing products and for investing and portfolio management needs of individual investors and institutional distribution partners.

The Financial Times hinted that Ameritrade might buy TD Waterhouse from TD Bank Financial group for somwhere between $2 billion and $3 billion. The companies have not confirmed this, however.

In early May, Ameritrade revised its earnings forecast due to difficult market conditions. The company posted a 30% decrease in monthly volume.

“We’re seeing lackluster market performance and feel retail investors are waiting for economic conditions to improve. Therefore, we feel it is prudent to adjust our earnings guidance at this time,” said
Ameritrade CEO Joe Moglia.

Today in early trading, Ameritrade shares went up 43 cents to $14.82, while shares of Toronto Dominion Bank had an increase of 96 cents, reaching $42.31.

Chris is a staff writer for WebProNews. Visit WebProNews for the latest ebusiness news.

The online stock trader has made seven acquisitions in the past four years. Ameritrade “is a leader in consolidating this industry,” according to CEO Joe Moglia. Ameritrade has been talking to Canadian bank Toronto-Dominion about acquiring TD Waterhouse.

The rejection of the offer may be a simple attempt to force E-Trade into making a higher offer. Both companies enjoy high profit margins, as their operations run electronically, and there does not appear to be any pressure on either firm to enter into a merger.

E-Trade disclosed terms of the deal to the media. They offered $1.5 million USD in cash, plus a 47.5% interest for Ameritrade shareholders in the merged company. Ameritrade’s market value of nearly $5.6 billion weighed against the offer, which valued the company at slightly less.

Both companies, and trading firms in general, have been hurt by the spate of Federal Reserve rate increases. Should the Fed refrain from continuing the current trend of rate hikes when the board meets in late June, business should pick up for Ameritrade and E-Trade.

Strength Through Growth

But some analysts speculate the only growth opportunity for the industry will come through mergers. E-Trade offers more financial products than Ameritrade, especially banking products, and a merger gives them the opportunity to market those items to Ameritrade clients.

Mergers and acquisitions will continue in the industry, as trading firms emulate the exchanges. The NYSE will acquire electronic trader Archipelago, and Nasdaq will merge with Instinet, according to the New York Times.

David Utter is a staff writer for WebProNews covering technology and business. Email him here.

The news was unconfirmed until now that is. E*Trade has now confirmed that it offered Ameritrade shareholders 47.5% of a combined company, plus $1.5 billion in cash.

“The proposed deal represents immediate value creation for shareholders of both Ameritrade and E*Trade,” said Mitchell Caplan, E*Trade’s chief executive officer in a statement.

Ameritrade is apparently not too interested in E*Trade’s offer. Last week, E*Trade sent Ameritrade a letter expressing their interest in the company, but Ameritrade declined.

“Ameritrade is not for sale. We are confident in our management team and its strategy,” said Ameritrade founder and Chairman Joe Ricketts. As Reuters says,

Ameritrade, which has done seven mergers in the past four years, said it expects the industry to continue to consolidate. It said it would continue to explore strategic opportunities, but did not elaborate.

Media reports said Omaha, Nebraska-based Ameritrade has held talks with TDWaterhouse Group parent Toronto-Dominion Bank about purchasing that New York online operation.

Ameritrade shares dropped 45 cents, or 3.4% to $13.31 in premarket trading today after going up 34 cents, or 2.5% yesterday on the Nasdaq Stock Market.

Chris is a staff writer for WebProNews. Visit WebProNews for the latest ebusiness news.

Shares of both companies got a boost on this unconfirmed news.

Bloomberg News reports:

Ameritrade shares surged $2.89, or 26 percent to $14.20 in 8:30 a.m. trading on the Inet ATS trading system before U.S. stock exchanges opened. E*Trade shares advanced 97 cents, or 8.1 percent, to $12.90.

Shares of E*Trade gained the most in more than two years on May 6 amid speculation that it was contemplating a merger with Ameritrade. The Times reported earlier today that E*Trade made its unsolicited offer for Ameritrade in a letter to the company’s board. The Wall Street Journal also reported that E*Trade sent a letter to Ameritrade’s board.

Many think that more online brokerage mergers will occur because it is getting harder for them to make money.

As of Friday, E*Trade’s market value was $4.4 billion while Ameritrade’s was $4.55 billion. If the two companies do merge, it will likely be an equal merger.

Chris is a staff writer for WebProNews. Visit WebProNews for the latest ebusiness news.