Sunday, August 5, 2012

Knight getting costly $400 million lifeline



Whew!  Talk about by the skin of your teeth!  Reuters reports that Knight Capital Group Inc looks set to enter into a $400 million financing deal with a group of investors, allowing the trading firm to open its doors Monday after a crippling $440 million loss, although it will come at a steep cost to shareholders, sources familiar with the situation said.

Such a deal would help Knight continue to operate and avoid further disruption and uncertainty for its brokerage clients, which include firms such as TD Ameritrade, Vanguard and Fidelity Investments.  An announcement on the deal is expected by early Monday, one source said.

The capital lifeline is coming from investors that include private equity firm Blackstone Group, Chicago market-maker Getco - in which private equity firm General Atlantic is a shareholder - as well as financial services firms TD Ameritrade, Stifel Nicolas, Jefferies Group Inc and Stephens Inc, according to the sources…..


No comments:

Post a Comment