FOX Business Network (FBN) Senior Correspondent Charlie Gasparino reports that Virtu Financial is “likely to present its bid for Knight Capital Group (KCG) sometime later today.” Gasparino also reports that Virtu plans to go to Knight Capital’s Board of Directors and present “a deal of at least $3 a share deal, all cash.” Whereas bidder Getco plans to “basically fire Tom Joyce,” Gasparino says if Virtu wins the bidding war then Knight CEO Tom Joyce would become “one of three top executives at the newly combined Knight Capital Group-Virtu.” Excerpts from the report can be found below, courtesy of Fox Business Network.
On the bidding war for Knight Capital Group:
“Sources tell the FOX Business Network that Virtu Financial is likely to present its bid for Knight Capital Group sometime later today, presented not in a letter way that Getco did…Virtu plans to go to the Board of Directors of Knight and say here is our bid and – as opposed to Getco’s bid which is $3.50, half cash half stock – they plan to present a deal of at least $3 a share, all cash. And here is what’s interesting: Getco is basically going to fire Tom Joyce…what I understand is that with Virtu’s management structure, if they win, Tom Joyce is one of three top executives at the newly combined Knight Capital Group-Virtu. That is an enticing move….we should point out if they do the Getco deal, Getco comes public through Knight. Vinny’s [Virtu’s] deal, they buy it outright, which means they may become public they may not, they can do an IPO.”