Nov. 28 - Knight Capital CEO Tom Joyce looks likely to come out on top if Getco Holdings gets control of the Wall Street firm despite his questionable leadership during a tumultuous time. Bobbi Rebell reports.
Our power player today: Knight Capital Group CEO Tom Joyce. Shares of Knight Capital jumped more than 20 percent after trading firm Getco offered to buy the company for $1.4 billion, or $3.50 a share. That's a 41 percent premium from the closing price ahead of rumors of a deal that surfaced about a week ago. Knight's Joyce would remain with the firm as non-executive Chairman. It's a big comeback from its near-death experience. A software glitch on August 1st unleashed a flood of orders to the New York Stock Exchange. Knight then had to unload a massive position at a $440 million dollar loss- pushing it to the brink of bankruptcy. The Wall Street firm was then forced to bring on new investors- which included Getco. Ahead of today's offer, Getco owned about 24 percent of the company. The deal will add Knight's consumer franchise to Getco's industry technology. Knight, which uses computer models to match trades, executes about 10 percent of U.S. volume. The deal is not done yet though- sources tell Reuters another suitor, Virtu Financial has also been interested in Knight Capital Group. It's not clear what Joyce's role would be in that case.