Knight Capital gets US$400mil rescue, shares tumble


NEW YORK: A group of investors rescued Knight Capital Group Inc in a US$400 million deal that keeps the embattled leader in U.S. equities market-making in business, but comes at a huge cost to existing shareholders.

Chief Executive Tom "TJ" Joyce told Reuters the new investors support him and his management team, but it was too early to tell whether the firm would shrink or keep the same strategy it had before last week's losses.

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