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Competing Offer for Knight Capital

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  • Description

    FBN's Charlie Gasparino argues Virtu is likely to present its bid for Knight.

  • Duration 5:40
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-- -- All right now to different test subjects here this Knight capital story would know already confirmed the reporting of Charlie Gasparino that she -- saw here yesterday on Fox Business that it has a proposal letter.

From -- -- value indicted three dollars fifty cents a share but now we have a new develop and we have a competing offer for night Charlie Gasparino what do you know.

I if you put -- my my reporting yes it was a pretty -- but -- that deal -- not.

Reporting is that deal is likely deals were about to happen today -- -- actively shopping the firm last night in an attempt.

To get the bids higher than what you would look what was been stated in the -- I think there were numerous reports.

About Doug Knight capital possibly going for about 700 million dollars as we know now with get goes -- -- there right there over well overbilling and it's a three dollar and fifty cent billion what we know now.

Is that the other major player is now coming to the put that the at a table.

It's called for -- financial run by -- vial of former head of the nymex.

This this -- -- -- -- high frequency trading firm.

It is what we know sources tell the Fox Business Network that that virtue is likely to present its bid for -- sometime later today presented.

Not in a sort of letter -- that that get go did almost a hostile bid in -- sensing this is what were we want to pay.

They file that with the -- exchange commission would virtue is doing is that they that they plan to go to the board of directors.

Of of night and say here's our -- we understand as opposed to get those bid which is.

Three dollars and fifty cents I believe it's half cash half stock they plan to present a deal of three to at least three dollars a share.

All cash to the -- to the to the board of directors of of virtue and here's -- in -- rob.

-- is basically gonna fire Tom Joyce based what they sit in their letters that that this guy Coleman.

Who's head of -- -- comes to CEO Tom Joyce becomes the non executive chairman not even an executive chairman and means you're done power and what I understand is that would be in virtues management structure if they win Tom Joyce is one of the top three executive act.

At the newly combined Casey -- Knight Capital Group for two.

And that's an enticing that's enticing move we should point out that you know some of the interest -- things here Tom Joyce did try to shop this widely I think.

You know that's an interest they move I know he was planning to talk to BlackRock about it.

I don't think anybody else will essentially buy and I think that's a move to show that there are people kind of interest and bid up.

-- clearly got it's a period a decent bid at a get go.

You know at three dollars a share a bit -- from from -- -- to this is still over a billion dollar deal I think that's the number he was shooting for.

It's all cash from what awaits its three dollars plus I think I -- what this exactly where comes out we should point out that virtues official offer I think they're they're gonna make -- public tomorrow.

You'll see the paperwork being filed tomorrow.

Get -- does have kind of the inside track and this is because they are a big owner of -- one of the bailout.

Companies for for for for night one night had that every trade that cost it.

400 some like 450 million dollars almost -- -- it would lead to bankruptcy were -- not.

For any for like massive capital infusion from some partners they got it just a very -- -- this points fair to say that I wouldn't say that the why would the inside track but what I -- I would just say that because there on the board in the -- let's back up a minute remember what happened with that was trying to explain this.

Last year you had it could you had basically a bailout.

Bunch of partners came in including -- got convertible stock right aren't you convert at a certain I've been at a -- -- -- we know it's just stocks at three that's pretty good to mated with a good.

Good amount of money they own a chunk of the firm I think they -- like 20% of the firm.

From that vantage point they'd -- -- have a major seat at the table.

The the problem is that there's other investors and you know when you got an all cash deal Brad and I tell it what would they be viola and his team were pretty Smart and of these cuts stokes safe -- Chris content and what they're gonna do is they're gonna don't say -- look at kitco.

If you believe this is a three dollars and fifty cent deal you have to believe they get goes earnings -- because it's combined deal that when you put the two companies together that because you gonna get stock.

That that's still a 350 deal and -- tea.

They're gonna say.

Mean maybe maybe not we should point out that if you do the get go deal.

Get go comes public through night because I -- -- company.

Then -- deal they buy it outright.

Which means they may come public may not they can do an IPO we wanna give you want second talk about the other extra you've been covering which is SEC and -- on Asia as you know Steve -- came out to head of SEC capital today -- -- -- -- conference call to write.

To -- not that much I don't think there's much revelatory here you know -- okay were right.

So for one thing which means -- really not a right.

He basic amount came out said the SEC securities -- commission's enforcement division issued a wells notice prior to the firm saying that the firm.

Basically did not have proper controls they were issued this against the firm and the country quote unquote control person at the firm.

About -- potential insider trading violations what does that mean wells notice -- -- staff believes that the full commission should charge you with it -- put some sort of fraud charge.

The full commission has agreed to it if that happens that's really bad for SEC why is that if they if they basically have to settle a fraud charge remember this -- civil no -- goes to jail.

Second essentially put a -- at at a business in this sense big investors Steve Cohen has most of his money in the I think it's something like eight billion dollars eight of the fourteen billion dollars in so it's most of the fund.

But the but the most of the other investors are public investors.

They would be that a lot of -- could not investment fund that debt is excited for fraud and it Steve Cohen who -- you can get.

Theoretically thrown out of the securities business.

This may be the final days of SEC capital.

Right now much discussed in recent years though whether he would shut down a -- give out some money back into trying to send money to well I mean like what should -- but you know.

So the Justice -- not going away either member that's criminal this as civil hearing what part is it's part of the proof Iraq thank -- Charlie and I got -- around our.

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