Citadel plans to sell up to 120 million shares of E*Trade Financial

By Lisa Kerner

Charlotte, N.C., Aug. 13 - Citadel Investment Group, LLC affiliate Citadel Equity Fund, Ltd. entered into a rule 10b5-1 trading plan in which it will sell up to 120 million shares of E*Trade Financial Corp.

The shares will be sold through a broker using a predetermined formula on a daily basis beginning Aug. 31. The per-share price for each sale will be at least $1.20, according to a schedule 13D/A filed with the Securities and Exchange Commission.

The plan, which is expected to conclude by the end of October, enables Citadel to reduce its total exposure to E*Trade "in an orderly manner," a Citadel news release said.

Kenneth Griffin, Citadel's president and chief executive officer, will continued as a member of E*Trade's board of directors.

Citadel said it expects to remain E*Trade's largest shareholder on a fully diluted basis once the plan expires.

The investors beneficially own 166,183,569 shares, or 14.9%, of the company's stock.

E*Trade is a financial services company based in New York.

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