According to The Daily Deal, NITE hired investment bank.
Link courtesy of digiknow of RB:
thedailydeal.com
"Knight hires adviser as buyers circle
by Erica Copulsky
ecopulsky@thedailydeal.com
Spurred by informal approaches last week from several interested suitors, Knight Trading Group Inc. has apparently hired an investment bank to help the company weigh its options, sources said.
Although it could not be confirmed, sources said that Knight, the Nasdaq's largest market maker, has retained San Francisco-based Robertson Stephens & Co. as its strategic adviser.
Robertson Stephens was Knight's lead underwriter in its initial public offering in 1998.
A Knight spokeswoman did not comment by press time. A Robertson Stephens spokeswoman was unavailable for comment.
Knight has been approached in the past week or so by several brokerage giants, including Morgan Stanley Dean Witter & Co. and Citigroup's Salomon Smith Barney Inc. securities unit, about a possible combination, sources said.
The approaches follow Goldman Sachs Group's announced deal to buy Spear Leeds & Kellogg, the biggest specialist firm on the New York Stock Exchange and one of the Nasdaq's biggest market makers. They also follow Merrill Lynch & Co.'s planned purchase of another large market maker, Herzog, Heine, Geduld Inc., in June.
Competition has heated among big brokerage firms to expand their Nasdaq market making capabilities in an attempt to bolster their underwriting businesses and capture more of the explosive retail stock trading business. So-called "wholesale" market makers - such as Knight, Spear Leeds and Herzog - handle large stock orders that other brokers refer to them, while full-service brokerage firms mainly execute their own customers' orders.
With Goldman buying Spear Leeds and Merrill taking Herzog out of the running, there is only one major independent market maker left: Knight. That scarcity factor has only reinforced speculation that Knight would likely be next to be acquired. Knight shares closed Tuesday at $35.31 on the Nasdaq.
Knight CEO Kenneth Pasternak has said in the past that his firm wasn't seeking a buyer, but wouldn't rule out any offers. He did not return calls seeking comment on the matter.
Erica Copulsky is a senior writer at The Daily Deal. She can be reached at: (212) 313-9358 or ecopulsky@thedailydeal.com"
Morgan |
