E*Trade dismisses JDV torpedo bid

financial services industry australian securities and investments commission chief executive

10 March 2005
| By Craig Phillips |

Online broking firm E*Trade Australia has scotched rumours it will torpedo technology group IWL’s efforts to acquire rival broking firm JDV following reports in today’s media claimed it was set to make a counter-bid.

The group made an announcement to the Australian Securities and Investments Commission (ASIC) this morning after a story in a Sydney-based paper suggested it was planning to trump IWL’s off-market bid by offering $1.10 for each JDV share.

However E*Trade chief executive Brett Spork said that while the firm was always open to opportunities in the financial services industry in this instance it had no plans to acquire JDV.

“[E*Trade] has no plans to launch a tilt for takeover target and rival internet broking service JDV,” Spork said in a statement.

Two weeks ago the broking arm of IWL announced an off market bid for JDV that would see it issue one IWL share for three JDV shares - pricing the Western Australia-based broking firm at just over $3 a share and more than $90 million in market capitalisation.

The move was followed by JDV directors notifying shareholders to take no action before they issue a formal recommendation to holders of the stock.

IWL yesterday released details of its scrip consideration of almost 30 million shares to stockholders of JDV, which was formerly part of WA-based stock broking group Hartleys.

In February IWL completed its acquisition of another rival broking firm, the former Rivkin Financial Services-owned Avcol Stockbroking business.

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