Chron.com reports: Two hedge funds that own stakes in TD Ameritrade Holding Corp. are pushing the online-brokerage firm to seek a large merger, saying that Ameritrade could boost shareholder value by joining forces with either E-Trade Financial Corp. or Charles Schwab Corp. Such a deal would deliver large expense and revenue benefits, the funds, managed by Jana Partners and SAC Capital Advisors, said in a letter sent last week to Ameritrade's board. The two funds own a combined 8.4% stake in Ameritrade and are seeking to substantially increase their position. Their letters were disclosed in a SEC filing by Ameritrade after the end of Tuesday's regular-trading session; Ameritrade shares climbed more than 9% in after-hours trading. Jana and SAC told Omaha, Neb.-based Ameritrade that the company's board should set up a special committee "to oversee the immediate pursuit of a strategic combination." Such a panel should be free of interference by directors selected by Canada's Toronto-Dominion Bank, which owns a big stake in Ameritrade and which SAC and Jana criticized as a hurdle to an Ameritrade deal. The two hedge funds said Ed Clark, TD's chief executive and an Ameritrade director, has said the board "is unanimous in its opposition to a combination with E-Trade," but that Jana and SAC, taking into account the benefits of such a deal, "can only conclude that Toronto-Dominion's self-serving strategic views have distorted the board's analysis."
Jana & SAC are acting like bullies. AMTD should remain independent. Imagine the credibility loss for Jana & SAC if that happened.