TD AMERITRADE SEEN CLOSING IN ON $4B SCOTTRADE DEAL

TD Ameritrade Holding Corp. and its largest stakeholder, Toronto- Dominion Bank, are nearing a deal to buy online brokerage Scottrade Financial Services Inc. for US$4 billion, according to people with knowledge of the matter. TD Ameritrade would acquire Scottrade’s brokerage operations for about US$2.7 billion in cash and stock, while TD Bank would purchase Scottrade’s banking operations for US$1.3 billion in cash, the people said, asking not to be identified because the talks aren’t public. The takeover may be announced as soon as Monday before markets open in North America, the people said. The transaction would combine two of the largest online brokerages, an industry under pressure from lower trading volumes and sluggish revenue growth. Such platforms are used by consumers, wealth advisers and other investors to trade securities outside of traditional brokerages. Bloomberg reported last month that Scottrade was working with an adviser to explore a sale. The St. Louis Business Journal reported the pending agreement on Saturday.