TD teams up in bid for discount brokerage Scottrade

Discount broker TD Ameritrade Inc. has teamed up with major shareholder Toronto-Dominion Bank to make a joint bid for competitor Scottrade Financial Services Inc., reports The Globe and Mail.

Privately owned Scottrade is one of the five largest discount brokers in the U.S., and is about half the size of TD Ameritrade. The sale is expected to be worth about US$4 billion, the Globe reports.

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The TD team reportedly made a joint, non-binding offer earlier this month. Other offers are expected from competitors such as E*trade, Charles Schwab and U.S. banks, says the Globe.

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On its website, Scottrade posts a net capital of US$264 million, as of April 30, 2016. TD Ameritrade, a publicly traded company, has a $19.4-billion market capitalization, $763 billion in assets and 6.9 million client accounts, reports the Globe.

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The staff of Advisor.ca have been covering news for financial advisors since 1998.