• Julie Skye

The Buy-Ups Keep Coming

This is the update on the TD Schwab merger:

"As legal and regulatory concerns stay front and center for those leading the planned $26 billion merger of Charles Schwab and TD Ameritrade, one analyst says the deal should move forward. 

“We believe the merger is more likely than not to occur and currently incorporate a 75% probability of its going through in our valuation model,” said Michael Wong, Morningstar’s director of equity research for financial services, in a recent report

A big hurdle could be removed Thursday when TD Ameritrade shareholders vote to support or reject the deal. If two-thirds vote in favor, it would supersede a lawsuit against the transaction that argues Schwab became an “interested stockholder,” as defined by a Delaware law, in its merger target before its board approved and went public with the news of the deal. 

Schwab disagrees with this argument but says if a court in Delaware rules against it, TD Ameritrade cannot merge with it for three years since the time it “became an interested shareholder.” This legal challenge, though, can be superseded if “the business combination is approved by the TD Ameritrade board of directors and authorized by the TD Ameritrade stockholders by the affirmative vote of at least 66 2/3% of the outstanding TD Ameritrade common stock,” Schwab said in a recent filing. 

Separately, Schwab said it updated and amended a prospectus and proxy statement in order to put to rest eight other lawsuits concerning an “incomplete and misleading registration statement.” 

“TD Ameritrade and Schwab believe that no further disclosure is required to supplement the definitive joint proxy statement/prospectus under applicable law,” the two firms said.

4 views0 comments

Recent Posts

See All
Contact Us
(918) 408-7981  |

36º North  |  36 East Cameron  |  Tulsa, OK 74103

© 2021 Sustainable Advisors Alliance LLC. All Rights Reserved


Sustainable Advisors Alliance, LLC (“SAA”) is a registered investment advisor registered with the SEC. Registration does not imply a certain level of skill or training. The presence of this website on the Internet shall not be directly or indirectly interpreted as a solicitation of investment advisory services to persons of another jurisdiction unless otherwise permitted by statute. Follow-up or individualized responses to consumers in a particular state by SAA in the rendering of personalized investment advice for compensation shall not be made without our first complying with jurisdiction requirements or pursuant an applicable state exemption.

All written content on this site is for information purposes only. Opinions expressed herein are solely those of SAA, unless otherwise specifically cited.  Material presented is believed to be from reliable sources and no representations are made by our firm as to other parties’ informational accuracy or completeness. All information or ideas provided should be discussed in detail with an advisor, accountant or legal counsel prior to implementation.