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Ameritrade Shares Rally Amid Sale Rumors

August 23, 2000|Reuters

Shares of Ameritrade Holding Corp. (AMTD) rallied Tuesday amid talk of a possible sale of the No. 5 U.S. Internet brokerage.

"We hear that there's a rumor of a potential acquisition by American Express [AXP]," said Robertson Stephens analyst Scott Appleby.

Officials from Ameritrade were not immediately available for comment, and a spokeswoman for American Express Co., which already has an online brokerage operation, said the company does not comment on market speculation or rumors.

Ameritrade shares advanced $1.13 to close at $17.06 on Nasdaq. Though the stock has rallied more than 20% this month, it remains well off its 52-week high of $31.

"The Internet financials have been beaten down so much and they look like they're clearly off the bottom, so they're starting to pique investors' interest again," said Arnie Owen, a managing director at Roth Capital Partners in Newport Beach. "If in fact there are no interest rate hikes between now and November and December, the market's going to feel a lot better about that."

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Ameritrade shares (ticker symbol: AMTD) rose 7% on Tuesday amid takeover speculation, though the stock remains down 21.3% year to date.

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Ameritrade shares, weekly closes and latest on Nasdaq since Dec. 31:

Tuesday: $17.06, up $1.13

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Source: Bloomberg News

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