Etrade News

Thursday, November 29, 2007

Selling half of my position here and maybe all

ETFC E*Trade announces $2.5 bln investment led by Citadel (5.28 ) -Update-

Co announces an agreement that will result in a cash infusion of $2.5 bln. The transaction, led by affiliates of Citadel Investment Group, includes immediate funding of approx $2.4 bln with the remaining $150 mln expected to fund by January 15, 2008. E*Trade also announces that, effective immediately, R. Jarrett Lilien has been named acting Chief Executive Officer, succeeding Mitchell H. Caplan, who has stepped down from the position of Chief Executive. Mr. Caplan will serve as an advisor to the co on transition matters through the end of the year. Co will receive $1.6 bln of capital in exchange for 12.5% unsecured notes and common stock. Additionally, Citadel has acquired E*Trade's entire ABS portfolio, including CDOs, for $800 mln in cash. As a result of the sale of the ABS portfolio, E*Trade will take a charge of $2.2 bln.