Knight Capital nears deal to raise $400 million from investors: CNBC
NEW YORK (Reuters) - Embattled equities trading firm Knight Capital Group (KCG.N: Quote) was close to securing a $400 million capital injection from a group of about a half dozen investors, CNBC reported Sunday, citing a person involved with the deal.
Chicago market-maker Getco and Omaha brokerage firm TD Ameritrade AMTD.N appear likely to be part of the investment group, the source told CNBC.
A Knight spokesperson could not be reached by CNBC and the report did not cite any response or comment from Getco or TD Ameritrade.
The reported $400 million capital infusion would come in the form of sale of convertible securities or bonds that turn into stock in Knight at a certain fixed price, CNBC reported.
Knight has been in crisis since Wednesday, when the firm lost $440 million -- most of its capital -- after a software glitch caused it to make thousands of unintended trades.
The company said on Thursday it was actively pursuing strategic and financing alternatives.
(Reporting By Katya Wachtel; Editing by Maureen Bavdek)
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