ANZ Bank has made a bid to buy online broking firm E*Trade for $268 million.
Directors of E*Trade will recommend to its shareholders that they accept a cash offer of $4.05 per share by ANZ.
ANZ is the major shareholder of E*Trade with a 34.2 per cent stake in the business.
ANZ said it will still retain E*Trade staff and will manage the business as a separate brand.
The announcement comes as no surprise. The bank first entered an alliance with the stockbroking firm in 1999.
Unlike the other banks, ANZ still does not own any online stockbroking businesses, Aspect Huntley analyst Peter Warnes said.
"ANZ has been lagging behind the other major banks in terms of stockbroking and funds management businesses. The purchase of the E*Trade business is a step in the right direction for them," he said.
E*Trade chair Kerry Roxburgh said the deal will be a positive move for E*Trade.
"We believe this is a very positive development for E*Trade. The committee of independent directors have concluded that is in the best interests of all shareholders and are pleased for shareholders to consider it," Roxburgh said.
E*Trade shares closed at $4.15 up 12.16 per cent yesterday.
