E-Trade forms committee on shareholder requests

AP News
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Posted: Aug 08, 2011 7:28 PM
E-Trade forms committee on shareholder requests

NEW YORK _ E-Trade Financial Corp. said Monday its board formed a special committee of independent directors to review its broad strategies in response to a request from its largest shareholder.

The committee hired Goldman, Sachs & Co. to conduct the strategic review. Committee members will include directors Frederick Kanner, Joseph L. Sclafani and Joseph Velli.

The committee was formed in response to a letter from Citadel LLC, which demanded that E-Trade let shareholders consider proposals, including the hiring of new financial advisers to explore options such as selling the company.

E-Trade said in July it got a letter from Citadel LLC asking it to vote on a number of proposals. On July 22, the company responded and outlined steps that had been taken to address Citadel's requests. On July 25, Citadel delivered a second letter responding to the actions taken by the company.

Shares of E-Trade fell $1.66, or 13 percent, to close at $10.93 amid broad market declines.