Bank Makes Offer for Rest of Brokerage

Toronto-Dominion Bank offered Wednesday to buy the 12% of No. 2 discount brokerage TD Waterhouse Group Inc. that it doesn’t already own for about $409 million.

The bank also said it will fire 200 employees at its securities arm, resulting in a $102-million pretax charge in its fiscal fourth quarter ending Oct. 31.

Toronto-Dominion (TD), Canada’s No. 2 bank, would pay $9 a share for each share of TD Waterhouse, 45% more than Tuesday’s closing price of $6.20.

TD Bank sold part of TD Waterhouse (TWE) to the public in June 1999 at $24 a share. Earlier this year, Credit Suisse First Boston bought back stock of its online brokerage for $6 a share two years after selling them for $20.

TD Waterhouse shares rose $1.80 to $8 on Wednesday. TD Bank fell 12 cents to $24.27.