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FBN’s Charlie Gasparino on what led the potential Knight Capital and Blackstone deal to fall through.
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Tells on that big pillow the -- of black stones near takeover of Knight securities -- talks broke down is -- announced its well massive trading loss there -- new questions about knight's financial condition even before the now.
Infamous trading -- Charlie Gasparino has been ahead of the story every -- well it has the latest well you're gonna.
This is -- deal I mean was this was -- a deal body.
Between night and and blacks blacks Blackstone it was a black -- diary -- calling -- -- that that and and basically was basically to take black night.
-- right and talks broke down.
Very very advanced talks eight months into it the Blackstone was with their with -- due diligence.
They weren't ready did sign the papers but they were they were close very close we have sources tell the fox is -- -- -- sources on both -- -- -- -- -- -- And I black and Blackstone so here's what we know in this is gonna end a little more interest -- -- conspiracy to -- -- all day on the air and wolf what happened here night was negotiating a deal that would have offered investors.
Very little premium usually want but 120% premium.
This might have been what's known as an ad deal and at.
Market deal but they want -- abiding extra for about one point two billion minus the debt they have about 400 billion in debt.
A 400 million in debt and start taking those numbers around you're right act.
The right at the market cap for -- for night which was about 900 private dollars closed at the time before the trading error.
Last Wednesday so and it was an act market deal why would they do -- -- market deals with the big at some premium some want to do this what's kind of interesting.
What this was known as a management buy a management would own the company Blackstone would for management was going to be in control so Tom Joyce.
Gets to keep CEO's job.
And in this deal he's the currency would -- kept his job CO.
And so from what I understand with the current management so they have is that -- -- they were ready to become a private company.
If the deal went through they were in the final stages we know that before the error.
And the bottom line is how they would close he was going to keep his job now when I'm running by this a -- -- around a lot of people.
What are they saying what is the conspiracy theories that are coming up as I don't know.
Why you want to sell -- -- cheap why did so for all the only -- -- -- -- example night.
Either had a business model problem -- Tom Joyce said you know this is it ten dollars a share is the best world we're gonna -- based on this environment.
That's one possibility the other possibility is that.
He they had some issues with their balance sheet which we don't know about that fed.
And the third -- possibility is it's a combination of both.
We don't know.
They are not talking to us are on the record about this Tom Joyce has refused to answer all my questions concerning this and other issues so we're -- waiting for them to come -- Happens now -- at the stock floating around -- real -- -- market cap 300 million right now right.
-- I I think this is a company that's that that's still in turmoil I mean this black this Blackstone -- takeover thing yep if you don't as -- was the only private equity firm in the deal.
Right -- no the president will -- market makers there's a reason for that you know now Lotta people walked away from this.
I think that this is a problematic.
Stock based on what I hear now.
There's another side of the story I would love Tom Joyce to come wanna give us to decide the story.
Because my question being is different and I'll look at this question that -- market -- -- My credit chairman and it'd be did not know I am quite right we'll get the guys execs fly over forget what it's -- ahead later big guy but -- -- -- And he's a Smart guy -- -- and yet in the I believe he's good guy but you know.
There is an issue here.
You know.
There's a lot of lot of weird stuff with this company yep a lot of people walked away health resolved at this trading glitch hits right at this moment but that's the whole thing and that's not supposed to happen right that's what about a week it hit.
Without anybody who.
Knowing he was going on for so long -- well a little bit 45 minutes at least -- -- -- -- it depends on who you tour -- that's the official word around okay five minutes.
But I will tell you.
Why did this -- you know this Blackstone deal.
That wasn't forget about the trading loss why they were doing a take act Frankel -- -- get at least the act.
What did they know.
That's usually pay a little bit more for if you read it you know -- great stuff and appreciate it that's the latest on --
