Canadian Imperial Bank of Commerce is in advanced talks to acquire U.S. fifth-largest  discount broker, Ameritrade, for as much as US$1.8 billion, USA Today is reporting.

The paper cites unnamed sources with knowledge of the negotiations, noting that the negotiations are stuck on price. CIBC is said to be offering between US$9 and US$10 per share for Ameritrade. Ameritrade declined comment, and a CIBC spokesman could not be reached.

The paper suggests that CIBC is looking to buy Omaha-based Ameritrade to expand its reach in the US.. and to compete with Toronto Dominion Bank, which controls brokerage TD Waterhouse. It says CIBC would also distribute Ameritrade services through its Amicus electronic banking arm.

Ameritrade has been on the block after falling on hard times, reporting a loss of US$54.2 million for the second quarter, compared with a profit of US$3.2 million a year earlier. It has also seen some management turmoil.
-IE Staff