Citadel sells $301 million of its E*Trade shares, causing 7.1% fall
|April 29th, 2010||
|At the end of April, online broker E*Trade Financial Corp sold 172 million shares of its common stock (ETFC.O) in the secondary market at the request of Citadel Investment Group at $1.75 a share, causing shares to fall 7.1%. According to Reuters, the sale by Citadel Equity Fund Ltd and Wingate Capital raised $301 million but may have made smaller investors, who were betting on a slow recovery from E*Trade’s mortgage lending losses, nervous. Both funds are affiliated with Citadel, the largest single holder of E*Trade shares after the hedge fund bailed out the online broker three years ago.|
At this point, neither E*Trade investors nor its analysts are sure if Citadel plans to sell more of its E*Trade stock. Despite the large recent sale, Citadel remains E*Trade’s largest stakeholder.
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