August 5, 2012 / 6:38 PM / in 6 years

Knight Capital nears deal to raise $400 million from investors: CNBC

NEW YORK (Reuters) - Embattled equities trading firm Knight Capital Group KCG.N 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.

A Knight Capital logo is seen on a trader's jacket on the floor of the New York Stock Exchange August 1, 2012. REUTERS/Brendan McDermid

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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