BEVERLY HILLS, Calif. (HedgeWorld.com)–Ameritrade Holding Corp. subsidiary Ameritrade Inc. said Monday it plans to buy the online retail account business of JB Oxford Holdings Inc.
The deal is expected to be complete this summer, pending approval from regulators and JB Oxford Holdings shareholders, according to a news release from Ameritrade Holding Corp. The final purchase price will not exceed US$26 million.
JB Oxford is one of a number of broker-dealers caught up in various late trading and market-timing probes related to hedge fund Canary Capital Partners LLC, Secaucus, N.J. New York Attorney General Eliot Spitzer, in his original complaint against Canary, mentioned that in August 2002, Canary reached out to JB Oxford as it increased the number of broker-dealers with whom it had late trading arrangements.
The business part of the business set to be acquired by Ameritrade is separate from the broker-dealer and clearing functions subject to the late trading probes, Ameritrade spokeswoman Katrina Becker said.
JB Oxford was not named as a defendant in the complaint against Canary, and Mr. Spitzer’s office has not filed separate charges against the firm.