Getco to buy Knight Capital for $1.4 billion
- Merrill Edge® Investing Get 30 Free Online Stock or ETF Trades Per Month From Merrill Edge. www.MerrillEdge.com
- 31
-
 A Knight Capital logo is seen on a trader's jacket on the floor of the New York Stock Exchange ( BRENDAN MCDERMID, REUTERS / December 19 , 2012 ) |
(Reuters) - Knight Capital Group Inc , which suffered a near-fatal trading error in August, said it will be acquired by electronic trading firm Getco Holdings Co in a deal valued at $1.4 billion in cash and stock.
The deal seals a whirlwind five months for Knight, which executes about 10 percent of U.S. equity trading volume.
The company was rescued by a group of investors led by Jefferies Group Inc and including Chicago-based Getco who injected $400 million after errant software sent millions of unintentional orders in the opening 45 minutes of the U.S. trading day on August 1.
Knight and Getco will combine to form a new publicly traded company. Knight shareholders other than Getco will have the right to elect either $3.75 per share in cash or one share of common stock in the new business.
The offer represents a 13 percent premium to Knight's closing stock price of $3.33 on Tuesday. It is also a 51 percent premium to Knight's closing price on November 23 when reports surfaced that the company was looking for buyers.
"The transaction provides near-term certainty in the form of cash," Knight Chief Executive Thomas Joyce said in a statement.
Sources told Reuters on Tuesday that Getco was poised to buy Knight after sweetening its offer to beat out rival Virtu Financial LLC.
(Reporting by Tanya Agrawal in Bangalore; Editing by Sriraj Kalluvila)
(0)
(0)NASDAQ DIP and RIP
Here is the best word that describes what i do here.
Intuitive;
means having the ability to understand or know something without any direct evidence or reasoning process.
I was born with it, I'm truly blessed!
Alway's searching for winners'
