OXPS Optionsxpress Holdings, Inc. (MM)

Charles Schwab Corp. (SCHW) Chief Executive Walt Bettinger said any potential acquirer of E*Trade Financial Corp. (ETFC) would have many issues to address in such a deal.

Speaking at Schwab's business update for institutional investors, Bettinger said factors in an E*Trade deal would include "the purchase price of the transaction, capital holes that need to be filled under purchase accounting rules, the dependency of the transaction and the vulnerability it would create."

Earlier this week, E*Trade disclosed that it received a letter from Citadel LLC, its largest shareholder, requesting that it explore a potential sale of the company. The letter asked E*Trade to call a special shareholder meeting to discuss maximizing shareholder value as well as remove two of its directors and hold an election to choose independent replacements.

While E*Trade has a solid brokerage franchise, it is seen as an acquisition candidate because of its bank's mortgage portfolio, which posted heavy losses amid rising delinquencies, though credit trends have improved in recent quarters.

Analysts have long suggested E*Trade's main rivals Schwab and TD Ameritrade Holding Corp. (AMTD) could be candidates to buy the firm, though Schwab is in the midst of completing its own purchase of optionsxpress Holdings Inc. (OXPS), slated to close in the third quarter.

At the update, Bettinger also said Schwab is making progress toward opening a handful of independent branch locations by the end of 2011. Schwab unveiled its plan for such a push in February.

Bettinger said Schwab is "getting 10 to 12 leads a day from people interested in opening those franchises." A slide in his presentation said the company launched a website to "provide a primary initial destination for candidates" and said it has nearly 500 leads collected.

Shares of Charles Schwab recently traded down 0.3% at $15.59. The stock is down 9% year-to-date, but up 3.2% over the past 52 weeks.

-By Brett Philbin, Dow Jones Newswires; 212-416-2173; brett.philbin@dowjones.com

Optionsxpress Holdings, Inc. (MM) (NASDAQ:OXPS)
Gráfica de Acción Histórica
De Abr 2024 a May 2024

Optionsxpress Holdings, Inc. (MM) (NASDAQ:OXPS)
Gráfica de Acción Histórica
De May 2023 a May 2024