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Tuesday, December 18, 2012

Knight Capital to be sold to Getco Holding -sources, (NYSE: KCG)

Knight Capital Group's board is expected to soon enter into exclusive talks with either Getco Holding Company LLC or Virtu Financial LLC on the sale of the company, two sources familiar with the negotiations said on Tuesday.Knight's directors ended Monday without a decision on which of the offers to accept, as they weighed the different structures of the offers as well as the motivations of some of Knight's own investors, according to a separate source. Still, the idea of the electronic trading firm remaining independent was unlikely, the source added.Getco recently increased the amount of cash to its cash-and-stock offer for Knight, which executes around 10 percent of U.S. equity trading volume, to 60 percent, valuing it at $3.60 a share, or around $1.8 billion, while Virtu boosted its all-cash bid to $3.20 a share, sources said.Chicago-based Getco's deal would see it merge into Knight to create a new publicly traded company, whereas Virtu would take Knight private.

Knight Capital Group, Inc. is a United States-based company that provides financial services. Shares of KCG traded higher by 2.15% or $0.07/share to $3.33. In the past year, the shares have traded as low as $2.24 and as high as $13.59. On average, 3757970 shares of KCG exchange hands on a given day and today's volume is recorded at 8035009.