TD Bank Group and TD Ameritrade Corp. have signed a deal to buy Scottrade Financial Services in a cash-and-stock deal valued at $4 billion (U.S.) (5.3 billion Canadian). Under the agreement, TD Bank will acquire Scottrade Bank for $1.3 billion in cash, while TD Ameritrade will take the rest of the brokerage firm for $2.7 billion in cash and stock. TD Ameritrade said its payment will include $1 billion or roughly 28 million shares and $1.7 billion in cash. The cash portion of the deal will come from $900 million in cash TD Ameritrade already holds, a new $400-million debt offering and the sale of 11 million shares to TD Bank to raise another $400 million. TD Bank, which already has a large stake in TD Ameritrade, said it expects to hold a 41.4 per cent stake in the firm once the deal is complete.

Source: thestar October 24, 2016 11:55 UTC