TD Ameritrade Discussing Acquisition of E*Trade: Report

The directors of securities broker TD Ameritrade (NASDAQ: AMTD) are meeting Tuesday to discuss the potential acquisition of online broker E*Trade (NASDAQ: ETFC), the Wall Street Journal reported this weekend.

Citing people familiar with the matter, the Journal notes that the expected talks don't necessarily mean a formal bid will be made.

According to the report, "The board meeting was already scheduled when hedge-fund firm Citadel LLC, E*Trade's biggest shareholder, prodded the company last week to explore selling itself."

E*Trade Financial Corporation provides online brokerage and related products and services to individual retail investors. The company holds a market capitalization of over $4 billion.

Similarly, TD Ameritrade provides securities brokerage services and technology-based financial services to retail investors, traders and independent registered investment advisors. Founded in 1971, it holds a $11 billion market capitalization.

An Ameritrade spokeswoman told the Journal on Sunday that the company will "often look at opportunities in the marketplace in terms of the financial or strategic value they could add to our firm and will continue to do so."

Shares of TD Ameritrade have fluctuated between $18 and $22 all year. It's likely that Citadel wants to capitalize on an uptick in recent M&A transactions.