Getco makes $3.50 per share bid for Knight Capital

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NEW YORK (AP) — Getco is making a cash-and-stock bid for troubled trading firm Knight Capital that it values at $3.50 per share.

In a letter to City, N.J.-based Knight Capital, Getco Holding Co. says the acquisition would involve a two-step process in which 242 million new shares would be issued, followed by a tender offer for an additional 154 million shares.

Getco already owns about 31 percent of Knight's outstanding shares.

Knight suffered a trading glitch in August that sent markets reeling and cost the company more than $460 million.

Getco, in a regulatory filing said that CEO Daniel Coleman would lead the new company, and Knight CEO Tom Joyce would become non-executive chairman.