I'd be sort of #$%$ if they sold it, but if they sold it in that price range I'd want to be having my hands around a board members throat. That way I could throttle out of him all the value he gave away.
Why in the world would ETFC sell itself for 1 meager ~20% premium?
You are joking right?
Why would they sell for the joke of a premium, just as they get approval to downstream hundreds of millions of dollars, just as the housing industry gains real strength, just as it looks like the fed will increase rates...
and why would they give synergy profits to the buyer?
In 2007 there was a real sense that AMTD and ETFC would merge, and "The funds estimated an Ameritrade-E*Trade merger would create annual cost saving of $450 million to $500 million"
At the time I read as much as 600 million.
NOTHING has changed to make these numbers much different.
So rough numbers, 550 million in savings, 550 million shares of AMTD outstanding = a $1 increase in EPS for AMTD (cost savings only).
Ok these are quick numbers and I am working fast, gotta run soon, but you think ETFC is going to sell itself for a PUNY 2 Billion more than it is worth today to give 10+ billion increase in market cap to AMTD?