NEW YORK (AP) — Getco is buying rival trading firm Knight Capital in a cash-and-stock deal that could be worth more than $1 billion. The deal comes just four months after a major software malfunction at Knight roiled markets and threatened the company's survival.
Knight stockholders have the right to choose $3.75 per share in cash or one share of stock in the new holding company. The per-share price is a 13 percent premium to Knight's Tuesday closing price. Knight's stock rose more than 6 percent in premarket trading.
Getco Holding Co. already owns 57 million shares of Knight. It will receive 233 million shares of the new holding company and its existing stake in Knight Capital Group Inc. will be retired.
Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.
Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.