Hedge funds say TD Ameritrade takes first step

NEW YORK, July 3 (Reuters) - TD Ameritrade Holding Corp's (AMTD.O) move to retain only independent directors on its mergers and acquisitions committee is meaningful only if they are free to conduct the process of reviewing strategic combinations unimpeded, two activist investors said on Tuesday.

JANA Partners and SAC Capital Advisors, two hedge funds that own about 8.4 percent of TD Ameritrade, have been urging the brokerage to consider a sale or merger. The funds have consistently said merger discussions must be free of the influence of Toronto-Dominion Bank (TD.TO), which owns 40 percent of TD Ameritrade.

The brokerage said on Monday that the M&A committee formed after the funds first urged it to consider a merger will now be comprised of three members, all of them independent.

The funds also said they intend to reach out to the independent directors for their views on strategic options available to the company.