Dec 3 Cerberus Capital Management LP is in talks
to join Virtu Financial LLC's bid for U.S. brokerage Knight
Capital Group Inc, the Wall Street Journal reported,
citing people familiar with the discussions.
Virtu and rival electronic trading firm Getco Holding Co
have made competing bids for the Jersey City, N.J.-based Knight,
valuing the company at a minimum of $1.1 billion.
Knight was made vulnerable to a takeover this summer when a
trading glitch left it nearly bankrupt before a group of
investors stepped in with $400 million in emergency capital.
Cerberus' participation in Virtu's bid would add another
deep-pocketed investor to a group that also includes Silver Lake
Partners and banks such as Credit Suisse Group AG, the
Journal said. It added that the extent of Cerberus's potential
role in the group was still under discussion.
Knight's board met again on Monday to review the proposals,
though no imminent decision on a deal was expected, according to
people familiar with the negotiations, the Journal reported.
Directors are weighing an all-cash offer from Virtu that
values Knight at between $1.5 billion to $1.6 billion including
debt and would combine the two businesses into a privately held
firm, sources familiar with the matter told the Journal.
Getco's bid, submitted to Knight's board Nov. 28, is a
cash-and-stock transaction valuing Knight at between $1.4
billion and $1.8 billion including debt, depending on the value
of shares in the combined entity, which would remain publicly
traded, the paper said.
Knight directors are also considering keeping the company
independent, the Journal sources said.