Market pours cold water on M&A animal spirits

Charles Schwab agreed on Nov. 25 to buy TD Ameritrade in an all-share merger that values the smaller U.S. brokerage firm at $26 billion.

Schwab’s offer would leave its own shareholders with 69% of the merged company. Toronto-Dominion Bank, the Canadian lender that owns 43% of TD’s shares, would have a 13% stake in the new company, and remaining TD shareholders would hold 18%. The companies outlined up to $4 billion in annual benefits from the merger, of which up to $2 billion would come from cutting costs.

Separately, on Nov. 24 printer maker HP reiterated its rejection of a takeover approach from Xerox, saying that the $32.6 billion cash-and-shares proposal “significantly undervalues HP.” Xerox had offered $22 per HP share for its larger rival, consisting of $17 in cash and shares equivalent in total to 48% of the merged company.

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Investment Advisers Fear Losing Out in a Schwab-TD Ameritrade DealSchwab’s plan to buy TD Ameritrade isn’t sitting well with investment advisers who park their clients’ money with the big online brokerages. Obscene! What I notice the most is that the combined company will be based in Westlake, Texas. Charles Scwab abandoning San Francisco as it’s HQ. A little sad for Omaha as well. I won’t step foot in San Francisco.... FOH I ain't letting that sham AF company handle my 401K, I will be moving it
Source: WSJ - 🏆 98. / 63 Read more »