E*Trade, the leading online share trading company in the world, has raised its stake in IL&FS Investsmart to 23 per cent. Recently the US-based company had taken an additional stake of 4.5 per cent. Following this, IL&FS Investmart CEO Hemang Raja has stepped down. He will continue in the position till September 1, 2006. E*Trade is believed to be bringing a top manager from Europe to head Indian operations.

The writing on the wall is clear. IL&FS Investmart will no longer play second fiddle to Indiabulls or ICICI Direct.

IL&FS, which currently holds over 30 per cent stake in Investsmart, will continue as a stakeholder.

The block deal was struck last week when CSLA bought 3.1 million shares on behalf of E*Trade. Two FIIs —T Rowe Price International and Capital International — have sold the shares at Rs 131 apiece.

Go to article in The Economic Times.

Posted on 07/31/06, 3:47 PM
in: Main Page, Mergers & Acquisitions
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