Ken Griffin’s Citadel Equity Fund to sell 12% stake in E*TRADE

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The Citadel Equity Fund Ltd., an affiliate of Kenneth Griffin’s Citadel LLC, is planning to offer 23,950,000 shares of common stock in E*TRADE Financial Corporation (NASDAQ: ETFC) with a 30-day option to purchase up to an additional 3,592,500 shares. The total offering, including the 30-day option, represents a 12.45% stake in the company. E*TRADE Financial reported the news in a press release this past Wednesday.

Ken Griffin, founder of Citadel LLC, has been on E*TRADE’s board of directors since June of 2009. Citadel had provided financial assistance to E*TRADE in 2007 in return for the right to appoint a board member.

The last time Citadel sold such a large stake in E*TRADE, it caused a 7.1% fall in share price. In April 2010, Citadel Investment Group and Windgate Capital sold 172 million shares of E*TRADE common stock at $1.75 a share for a total of $301 million.
For Detailed Investor Profiles on these Investors, click below:
Citadel Investment Group
Related People: ; Becket Wolf*; Brandon Haley; David Grossman; Derek Kaufman; Jeff Runnfeldt*; Joe Squeri; Kaveh Alamouti*; Kenneth Griffin; Mark Stainton; Ryan Garino; Steve Weller*
Related Entities: Citadel Alternative Asset Management; Citadel Equity Fund; Citadel Kensington; Citadel Wellington; Equiduct; New Castle Re; Sowood Capital*
Related Article Tags: Shareholder Activists, Corporate Raiders and Proxy Battles


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