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FBN’s Charlie Gasparino reports that the Blackstone Group was ready to take Knight Capital private before the massive trading debacle.
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Is on night capital once again with the robot -- that -- -- Charlie Gasparino breaking out just how much money do you think that left on the table with this deal a lot of what -- more than anybody realizes.
We're getting this from sources close -- Knight capital close to some of the people that were -- in the steel.
That Blackstone the big private equity firm it was ready to take -- private before the trading ever.
They backed out when they found that about the trading -- they were ready to pay for what we on the stand.
One point two billion dollars before -- trading error.
We we also confirmed that Blackstone you know Pete Peterson and Steve Schwartzman had been in negotiations with nights for six months they did.
Six months worth of due diligence this was nearly.
A done deal offices -- -- on the Fox Business Network until that erroneous trade on -- relied billion dollars worth of stock.
Through the system that was a huge error.
Nearly -- night as you know that night came in there.
Been saved but through a sort of preferred convertible deal.
-- have Larry Larry McDonald told about late later you should point out that Blackstone is the only private equity firm in that deal for that reason.
They were already at the table but -- we're gonna do some different they were ready to take the whole damn thing -- it's an amazing story.
Of just how much that trading -- court court night shareholders I'll tell you this -- and and initially.
This story is far from over in terms of validity as Blackstone -- Donald is due diligence they oversee like what they Seoul yet well yet they liked what they saw until they saw an -- right.
And then it just destroyed -- firm so that wasn't worth.
The one point two billion dollars anymore -- -- point out that Jefferies came in there and used blacks tonnes due diligence and as part of the sort of effort to.
You know -- became a surprise player in this the -- corral those investors including Blackstone.
Who we -- probably understand Jefferies earned a twenty million dollar fee.
Using.
Complex well.
I'll tell you this -- had an exclusive interview with Howard -- -- -- of Cantor Fitzgerald be agency partners flat out asked him.
Were you at the table and he said Thursday night they were right there.
But he said.
They backed away because they wanted to go -- -- -- couple private equity guys but it appeared that obviously night needed a bunch of names out there that they they just it just wasn't going to work.
But he said this.
-- -- that went wrong was an absolute abomination he came just short of saying how ridiculous was night that they didn't catch it within the first 52.
That's the whole thing you need people but I think this is this is more than just that I mean this is a story that I'm I'm telling you.
Given what we -- -- now know about Blackstone role here yes they were part of this group that they we're gonna hit this -- private this was Knight securities.
Was good to be part of -- -- Stable of private equity holdings -- there is no doubt they did 68 want to due diligence they were ready to pull the pulled the trigger we on the how do we know this we know this from people close to the company people close to Blackstone this is confirmed -- when anybody goes out there.
This firm Knight securities was ready to be purchased for one point two billion dollars and it just shows you what happens -- and then actually.
When you don't have the proper due diligence what they -- us investors.
I will say this.
A lot of people didn't Tom Joyce a lot of kudos loop for arranging Baghdad last minute bailout he deserves it because it to some extent because listen they say 1415100.
Jobs New York area.
That's a good thing but I I.
I will say based on -- you know now.
I don't think he makes it as a CEO this firm you just can't believe this much money on the table they had a deal.
They we're gonna be bought before this thing.
And I'll tell you when -- to find out about this when this gets fully so elated and it is being fully circulated right now.
This guy if he's if he survived if you'll be.
You know because you know they can't find anybody -- -- -- converts were sold at a dollar stock so every dollar so obviously all the extra dollar -- adults fifty and now -- 307 well obviously this prices gonna go down of the stock yeah but you know also people are saying that they like him.
-- -- some degree the people think he's -- he's a good manager.
My I I'm just saying like let's not put all this together you leave -- this much.
My by the way my -- -- Blackberry buzzing by black president about it but I put this much stuff I could put this much stuff on on the table now fact that you had to deal.
I mean this was not like some thing where they just can't look -- and -- then maybe they were ready to pull the trigger I understand that at.
At that but these people close to -- -- they were ready to invest -- of a deal worth over billion and they pulled out when he saw that treating our.
May you just got.
Got got to hurt let's bring.
