26 July 2016
Find out more

Getco makes Knight Capital bid

28 November 2012  |  4409 views  |  0 Stock exchange numbers

High Frequency trading firm Getco has made a $3.50 a share offer for Knight Capital Group, which it helped rescue from bankruptcy over the summer.

Getco's cash and stock offer - valuing Knight at around $1 billion and an 18% premium on yesterday's closing price - would see the firm retain its public listing.

According to Bloomberg, the deal would be a two-step reverse merger: Getco would receive 242 million newly issued shares and warrants to buy 69 million more before making a tender offer for up to 154 million Knight shares at $3.50.

Getco's existing stake in Knight - about 57 million shares, or 24% - would be retired.

The holding was acquired in August when Getco joined six other firms in a $400 million bailout of Knight after a bungled trading software update affected its algorithms and sent prices in stocks haywire, costing the market maker $440 million and bringing it to the edge of bankruptcy.

In a letter, Daniel Coleman, CEO, Getco, says: "The combined company would be a leader in market-making and agency execution. The integration of our firms' operations would generate substantial earnings accretion going forward."

Coleman is widely expected to face competition though, with a second offer predicted to come from trading firm Virtu Financial later this week.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Humbled Knight seeks new CTO and operational risk manager

Humbled Knight seeks new CTO and operational risk manager

21 September 2012  |  6228 views  |  0 comments
Knight closes in on $400m rescue deal

Knight closes in on $400m rescue deal

06 August 2012  |  5285 views  |  0 comments
Getco fined $450k over lax HFT supervision

Getco fined $450k over lax HFT supervision

23 March 2012  |  6658 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
Visit VocaLink.comVisit capgemini.comFind out more

Top topics

Most viewed Most shared
satelliteContactless Bitcoin startup Plutus Tap &am...
9249 views comments | 9 tweets | 4 linkedin
MasterCard agrees £700m VocaLink acquisitionMasterCard agrees £700m VocaLink acqu...
9218 views 14 comments | 32 tweets | 38 linkedin
Apps crush internet for UK banking loginsApps crush internet for UK banking logins
7726 views comments | 18 tweets | 25 linkedin
Thomson Reuters and Imperial College form fintech and regtech research partnershipThomson Reuters and Imperial College form...
5892 views comments | 29 tweets | 16 linkedin
hands typing furiouslyHow machine learning can cut costs on tran...
5891 views 0 | 9 tweets | 2 linkedin

Featured job


Brussels (Belgium) or Paris (France)

Find your next job