Deals
Knight Capital Ducks Insolvency With $400 Million Investment
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Knight Capital Group Inc. received a $400 million cash infusion through the sale of convertible securities after trading losses spurred by a software failure drove the market maker to the brink of bankruptcy.
Investors agreed to buy preferred stock that will be convertible into about 267 million common shares, the company said today. Getco LLC, an automated trading firm, Blackstone Group LP, brokerages Stifel Nicolaus & Co. and TD Ameritrade Holding Corp., and the investment banks Stephens Inc. and Jefferies Group Inc. are investing, according to a statement.