KCG BBY Knight Capital Group said investors have agreed to buy $400 million of 2% convertible preferred stock, providing a critical lifeline for the market maker.
The identity of the investors wasn’t immediately available. Knight, which ran into trouble last week when a software glitch disrupted trading activities that cost the company $440 million on a pretax basis, said it expects to consummate the transaction later Monday morning.
Richard Schulze, the founder and former chairman of Best Buy, offered to buy the remaining shares of the big-box electronics retailer that he doesn't already own in a deal that values the company at up to $8.84 billion.
The offer of $24 to $26 a share represents a premium of 36% to 47% to Best Buy's closing price Friday. Shares surged 25% to $21.99 premarket. Mr. Schulze owns 20.1% of the company.
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