Knight Capital Group Inc. (NYSE:KCG), the firm who owns the computer that went crazy last week and traded 150 shares of NYSE stock in 15 minutes, is said to be in talks with a group of companies, in an attempt to recover some of the $440 million they lost.
These companies are said to include TD Ameritrade and Getco, whom they hope will be able to stabilize the issues caused by last week’s fiasco. Sources tell the NY Times that Knight hopes to close the deal before trading opens on Monday.
Clint Carlson's Carlson Capital Double Black Diamond fund returned 3.34% in August net of fees. Following this performance, the fund is up 8.82% year-to-date net, according to a copy of the firm's August investor update, which ValueWalk has been able to review. On a gross basis, the Double Black Diamond fund added 4.55% in August Read More
Knight Capital Group Inc. (NYSE:KCG) has been involved with several companies since Thursday, when their computer system had an error, which negatively affected more than 140 companies on the NYSE. Many of these companies had been contacted in regard to both buying some of Knight’s businesses, and infusing fresh investments into the company. The Citadel Investment Group cut their talks with Knight off on Saturday, claiming that there were potential regulatory issues.
If this deal with TD Ameritrade Holding Corp. (NYSE:AMTD) and Getco goes through, it could be Knight’s saving grace. Knight has announced that they have acquired a “short term” financial source which allowed them to operate on Friday, but now they are seeking more stable investment.
The outlook for Knight Capital Group Inc. (NYSE:KCG) is not all that beautiful, as the company had already suffered from the botched Facebook IPO, earlier this year. As to whether or not they will survive this event, remains to be seen. We will keep you posted as ne information arrives.