Gasparino: NASDAQ Expressed Interest in Knight Hotspot Unit
FBN's Charlie Gasparino on the latest on Knight Capital.
- Duration 5:13
- Date Dec 19, 2012
FBN's Charlie Gasparino on the latest on Knight Capital.
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Now take -- turn now back to Charlie Gasparino and the -- broke the story last night bank capital is going.
To debt -- after an extended bidding war between get going -- senior business.
Fox Business senior correspondent Charlie Gasparino is here with the latest.
I think now is the this sort of cutting comes I mean this is kind of expected we should point out that night.
Employees were prepping that is about 11100 prepping for massive layoffs and any deal what makes this steelworker any deal work.
Was this that you reduce expensive massively.
Basically sell everything but the market making unit which everybody wants broad market making -- matching -- and sells -- of stocks if you're retail investor average guy.
To buy stock.
It's probably been touched by night in some way because all the retail brokerages.
Said -- order flow tonight to match the buyers -- -- stocks.
So that's where we are right now right there looking at get goes -- management Dan Coleman is right now looking at.
How much and when when they're gonna start cutting I could tell you that employees of night.
Are -- going all over the place Morgan about apartment trying to shop themselves to Piper Jaffray had a bond department stifle necklace.
NASDAQ is interstate from what I understand in the hot spot FX that's and he CN.
Electronic market maker the matches buyers and sellers of commodities so this is what we have right now we have a fire sale and it's going to be an orderly process I should point out that.
Get -- is backed up by general active partners Smart people can't afford you know what to -- -- Sure they'll do orderly Tom Joyce will be around at least for the transition I believe companies the CEO of Knight capital.
He's now I guess been transitioned to -- me.
Non executive chairman we should -- change it.
That is not that that is that is correct title anymore not on executive chairman CEOs this -- Coleman from good cause that's where we are right now.
It's going to be I think.
You know listen -- that we we talk about the synergies and the stock of the markets obviously like this you know capitalism is there's a degree of creative destruction that goes on.
These in this trouble because of its own misstatements -- they add that -- training mishap cost the firm a lot of money basically put it out of business there were bailed out by a lot of people including -- It left them vulnerable OK so we should point it out but then there's the other side people are gonna be laid off.
During Christmas mean -- -- going to be free hand massively -- here and you know it.
That's not something to celebrate but I will tell you this the market likes this -- that we on the market was up.
Pretty pretty much yesterday pretty much all day and as -- as I reported first.
Big investors were saying get goes gonna get it isn't before we broke the news later on -- came in with a Heidi indeed they -- -- -- their bid up.
To that level that Tom Joyce always want to -- wanted a four dollar bid.
We move that up to 375 pretty damn close -- at that point you gotta walk you have been violent Clinton could really compete.
You know one of the weird things about -- whose bid.
-- it never got much sort of disclosure on exactly what it was.
It was unclear wasn't all cash -- -- they really have the financing back up for 323.
Dollars and twenty cents three dollars and thirty cent.
Cash bid higher they were ready to raise it to 330.
Before before get -- automatic.
That's a lot of money and in this environment to get financing for that I mean there were backed up by Goldman and Barkley is they allegedly had service behind him.
Just didn't see and I just -- you know I wish I had more -- had.
Feeling about that that I -- get -- put out of personally so generally to put out of Presley's it is what we have you cannot.
Why yelling and -- Wall Street likes this deal Charlie does this mean they're looking for additional consolidation given the breyer's -- -- -- stock price we sort of just we see it is not just then as simple Knight capital story and the company -- -- we should look at it that's likely.
Is it up slightly from where.
Twenty cents a B 53 big percentage -- nonetheless -- except when he sense but it's up fairly significantly from yesterday I think was trading around what 330.
I think right now what we're looking at with Knight is a special situation I mean I think they'll be some consolidation.
Among smaller brokerage firms and to put -- that Stifel Nicolaus has been buying out there out of by industry.
Front trichet -- Smart guy known for years for TBW recently keeper -- and and woods you know what -- you I think there is some degree of consolidation among among midsize firms.
We should point out that this is a special instance this was a bailout break these people -- want to cash out on the bid.
And one of the bailout partners was get go pretty Smart you know get cocaine in there got a seat at the table -- had a board seat.
Their partner in crime action -- front means that you you know yeah.
-- -- Jefferies and lose their -- had another seat at the table was very difficult for -- violent -- to what we should point out that -- is maybe the strategic mistake by virtue.
We I will -- these emerges Activision it's like you know it's like battleship you know its its award goes on.
-- had a chance to be a deep -- at the -- have to -- To buy to basically help bail out right -- those initial what -- they blew up and didn't.
Yet there are a lot of people that have set up that that I -- in this age but I thinking later regretted he might have even had the -- opportunity to do it and he didn't.
Charlie Gasparino thanks so much good staff its.