MENLO PARK, Calif. -- E*TRADE Group, Inc. (NYSE: ET) says that it will acquire 3.4 million shares of its common stock from Softbank Holdings, Inc. in a private transaction at a
purchase price of $3.60 per share.
Christos M. Cotsakos, chairman of the board and CEO of E*TRADE Group, called the repurchase The repurchase "an extremely compelling value-creation opportunity for the company and its shareowners and stakeholders."
Softbank has also filed form 13D recording a sale of an additional 12 million shares. This, in combination with the private sale to E*TRADE Group, completes the sale of the initial holdings of Softbank Holdings in E*TRADE.
Ron Fisher, vice chairman of Softbank Holdings and director of E*TRADE Group, said the transaction was consistent with Softbank's policy of diversifying its holdings through planned sales of stock in its portfolio companies. "Softbank will maintain its representation on the company's board of directors and remains confident in E*TRADE Financial's management team and their ability to continue successfully growing the business," he said.
The remaining 3,380,879 shares, held by E*TRADE Japan K.K., were acquired in April 2002 as part of an exchange increasing the company's equity stake in E*TRADE Japan.
