TD Bank to increase ownership of TD Ameritrade to 45%

By Lisa Kerner

Charlotte, N.C., Feb. 6 - TD Bank Financial Group said it will increase its direct ownership of TD Ameritrade Holding Corp. by approximately 5% under an agreement reached between the two companies.

The terms of a TD Ameritrade stockholders agreement increased TD Bank's ownership limit of TD Ameritrade to 45% from 39.9% on Jan. 24, a TD Bank news release said.

TD Bank president and chief executive officer Ed Clark said in the release that TD Ameritrade's significant long-term potential is a key part of his company's U.S. growth strategy.

According to TD Bank, it has also amended its September 2006 hedging arrangement with TD Ameritrade to provide for settlement in TD Ameritrade common shares instead of cash.

TD Bank said it expects the 27 million shares to be delivered on or about March 2 at an approximate cost to TD Bank of $515 million.

Based in Toronto, TD Bank Financial Group consists of the Toronto-Dominion Bank and its subsidiaries.

TD Ameritrade is an Omaha securities brokerage services and technology-based financial services company.

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