FOX Business Network (FBN) Senior Correspondent Charlie Gasparino reports that “Blackstone Group was ready to pay $1.2 billion for Knight Capital before its trading error.” Gasparino reports that Blackstone “conducted extensive due diligence and had been in negotiations for 6 months with Knight,” and that “Jefferies Group then used Blackstone’s due diligence and earned a $20 million fee for helping to arrange the plan that saved the firm.” Excerpts from the report can be found below, courtesy of Fox Business Network.
On what Knight Capital’s trading error cost the firm:
“Blackstone Group was ready to pay $1.2 billion for Knight Capital before its trading error. The private equity firm conducted extensive due diligence and had been in negotiations for 6 months with Knight. It was nearly a done deal, but they backed out after the erroneous trade. Jefferies Group then used Blackstone’s due diligence and earned a $20 million fee for helping to arrange the plan that saved the firm.”
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