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News > Deals
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Datek is on the block
graphic February 12, 2002: 11:46 a.m. ET

Online broker has hired Morgan Stanley; sale could fetch $1B.
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  • Small e-brokers may be takeover targets - Aug. 8, 2001
  • Datek sells majority stake for $700M - Dec. 1, 2000
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  • Datek Online
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    NEW YORK (CNN/Money) - Datek Online Holdings Corp. is searching for a buyer and a sale could fetch as much as $1 billion, sources close to the situation told CNN/Money.

    Jersey City, N.J.-based Datek has hired Morgan Stanley to search out potential offers, sources said.

    Privately held Datek could be worth $600 million to $800 million. With a premium, the online broker could sell for around $1 billion, analyst Rich Repetto of Putnam Lovell Securities said.

    Potential buyers include rival E*Trade Group Inc.; TD Waterhouse; Brown & Co., the online brokerage unit of J.P. Morgan Chase & Co.; and, Bank of Montreal, press reports said.

    Online trading slumped after the terrorist attack in September but has since rebounded. Datek, the nation's fifth-largest online broker, competes against E*Trade (ET: down $0.16 to $9.06, Research, Estimates), Charles Schwab Corp. (SCH: down $0.20 to $14.25, Research, Estimates) and TD Waterhouse. Datek has more than 800,000 online accounts.

    Datek's private investors are driving the sale, a source said. An investor group led by Bain Capital paid $700 million in December 2000 to buy a majority stake in Datek Online. At the same time Datek spun off its popular electronic trading network, Island ECN.

    Datek declined to comment. Morgan Stanley could not immediately be reached for comment. graphic

      RELATED STORIES

    Small e-brokers may be takeover targets - Aug. 8, 2001

    Datek sells majority stake for $700M - Dec. 1, 2000

      RELATED LINKS

    Datek Online





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    Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.

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