Was E*Trade's recent offer to purchase Ameritrade really a defensive move intended to ward off a deal between Ameritrade and TD Waterhouse? That is the suspicion one could have after Ameritrade and TD Waterhouse confirmed Tuesday that they are in talks.

The two discount brokers said in a statement that they are in talks and would not provide more comment until they had reached a definitive agreement. They added that no deal may be reached.

Meanwhile, London's Financial Times reported that the pair is close to a deal that could be worth $2 billion to $3 billion. The paper added that Ameritrade would be the acquirer in a deal.  

Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE