Citadel Equity Fund, an affiliate of Citadel Investment Group – a global financial institution, has entered into a Rule 10b5-1 trading plan on August 11, 2009 in connection with its holdings of E TRADE Financial Corporation.
Kenneth Griffin, president and CEO, who recently joined E TRADE’s board of directors, will continue in that role. Affiliates of Citadel, including Citadel Equity Fund are expected to maintain significant holdings in both the Common Stock and debt of ETFC, and even after expiry of the plan and assuming approval of the restructuring scheduled for a vote on August 19. Citadel Equity Fund is likely to remain E TRADE’s largest shareholder on a fully diluted basis.
Citadel’s plan, which is expected to conclude by the end of October, 2009, provides that a broker will sell up to 120,000,000 shares of E TRADE common stock for Citadel in accordance with a predetermined formula. Citadel has said that the plan will exercise no further discretion or control and permits it to reduce its aggregate exposure to ETFC in an orderly manner.
