Knight Capital (KCG) Ends Higher Amid Mixed News, Looming Debt Payment
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Knight Capital (NYSE: KCG) shares are still trading stronger Friday afternoon on several positive news bits.
Bloomberg reported this afternoon that private equity firms like KKR & Co. (NYSE: KKE), TPG Capital, and Silver Lake have shown interest in making an investment in Knight. Sources said that chances of a deal were small, given the uncertain nature of Knight's future, though at least one PE firm has signed a nondisclosure. The NY Times reported earlier that Knight might be in discussions to sell its futures brokerage unit.
Sandler O'Neil is said to be advising Knight on options. It was noted on CNBC that Goldman Sachs (NYSE: GS) took the other side of the large trade, charging Knight $440 million on execution. Currently, that debt is still outstanding and Knight has until Monday night to settle the balance. No word on whether or not Knight has secured a credit line to help it through the matter.
Knight stock got a boost this afternoon following word from TD Ameritrade (NYSE: AMTD) that it would begin routing client trades with Knight again. CEO Fred Tomczyk commented that "Knight is one of many order routing destinations for us and has long been a good and trusted partner."
However, U.S. SEC chairperson Mary Schapiro commented in an emailed statement that the agency would continue to investigate what happened at Knight. The initial reaction from traders sent shares flat, though they recovered shortly thereafter.
Shares ended the session Friday up about 56 percent.
Bloomberg reported this afternoon that private equity firms like KKR & Co. (NYSE: KKE), TPG Capital, and Silver Lake have shown interest in making an investment in Knight. Sources said that chances of a deal were small, given the uncertain nature of Knight's future, though at least one PE firm has signed a nondisclosure. The NY Times reported earlier that Knight might be in discussions to sell its futures brokerage unit.
Sandler O'Neil is said to be advising Knight on options. It was noted on CNBC that Goldman Sachs (NYSE: GS) took the other side of the large trade, charging Knight $440 million on execution. Currently, that debt is still outstanding and Knight has until Monday night to settle the balance. No word on whether or not Knight has secured a credit line to help it through the matter.
Knight stock got a boost this afternoon following word from TD Ameritrade (NYSE: AMTD) that it would begin routing client trades with Knight again. CEO Fred Tomczyk commented that "Knight is one of many order routing destinations for us and has long been a good and trusted partner."
However, U.S. SEC chairperson Mary Schapiro commented in an emailed statement that the agency would continue to investigate what happened at Knight. The initial reaction from traders sent shares flat, though they recovered shortly thereafter.
Shares ended the session Friday up about 56 percent.
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