Market maker Virtu makes offer for rival KCG

Listen to this article


Updated: Virtu Financial, the high-speed market maker, has made an offer to acquire rival KCG Holdings at a time when trading firms have struggled in an environment of low volatility in financial markets.

KCG confirmed late on Wednesday that it received an unsolicited offer from Virtu to acquire the company for $18.50 – $20 a share in cash. KCG said its board is reviewing the proposal.

Shares of KCG jumped 23 per cent late in the New York session after reports of the deal. Shares closed on Tuesday at $13.73, which makes Virtu’s offer about a 30 per cent premium.

A spokesperson for Virtu declined to comment while officials for KCG were not immediately available to comment.

The story was first reported by the Wall Street Journal.

Copyright The Financial Times Limited 2017. All rights reserved. You may share using our article tools. Please don't copy articles from and redistribute by email or post to the web.