Commentaries

Now raising intellectual capital

Citadel’s E*Trade Bonanza

Photo
-

Citadel Investment Group’s move to aggressively sell off its substantial stake in E*Trade Financial looks like hedge fund magnate Ken Griffin is throwing in the towel on his big gamble on the online broker.

But Citadel isn’t bailing on E*Trade. In fact, if Griffin gets his way, the Chicago hedge fund will have its fingers dug deeper into E*Trade, getting daily access to virtually all of the online broker’s stock and option trades.

With little fanfare, Citadel and E*Trade struck a tentative deal in June that would require the online broker to begin routing 97.5 percent of its customers’ Nasdaq stock and stock option trades to the hedge fund’s market-making operation.

Right now, E*Trade sends about 40 percent of its customer trades to Citadel’s market-maker division under a nearly two-year-old agreement that dates back to the hedge fund’s initial $2.5 billion investment in the broker.

Porsche’s VW options not for the faint-hearted

Photo
-

porsche2Porsche may own a lot of options on Volkswagen - around 20 percent of the larger carmaker’s shares – but the sports car maker is running out of alternatives to solve the financing problems it built up by acquiring a 51 percent stake in VW.

Despite a recent report of other investors being interested in relieving it of the options, Porsche insists that talks with Qatar remain exclusive.

  •