Knight Capital to Sell to Getco: Reuters

Closing a bidding war that has persisted for several weeks between Getco LLC and Viru Financial, a Reuters report indicated late Tuesday that Knight Capital will sell to Getco. 

Knight is the parent company of Urban Financial Group, the largest wholesale reverse mortgage lender and an active Ginnie Mae reverse mortgage-backed securities issuer. 

Reuters reported via Twitter that the decision came Tuesday afternoon citing sources close to the deal. Getco reportedly said earlier Tuesday it would up its offer from $3.50 to $3.60 per share. 

Advertisement

The Getco offer proposes cash and stock with Knight retaining is public listing. Virtu had offered all cash in a play that would take the company private. 

Market makers Getco and Virtu Financial began eyeing Knight publicly since the company suffered a trading glitch in August resulting in a $440 million-plus loss and a $400 million capital bailout from marketing trading peers including Chicago-based Getco. 

With the two offers on the table Tuesday, Knight’s board members had specified there was “not a third option,”  Bloomberg News reported. 

A request for comment from Knight had not been returned as of press time. 

Written by Elizabeth Ecker

Join the Conversation (2)

see all

This is a professional community. Please use discretion when posting a comment.

  • Now that Getco is taking over and with the loss of the fixed rate Standard, what is the point of keeping Urban?  Why not sell it now before it has far less value?

  • No point. A ,lot of companies possibly seriously reconsidering thier positions. Obviosuly waiting for the dust to settle. I just sneezed and I thougght I heard Ocwen?

string(84) "https://reversemortgagedaily.com/2012/12/18/knight-capital-to-sell-to-getco-reuters/"

Share your opinion