(Bloomberg) — Jefferies Group LLC boosted its stake this past week in KCG Holdings Inc. to 20 percent as the investment bank purchased an additional 6 million shares in the market maker it helped rescue in 2012.
Jefferies, a unit of Leucadia National Corp., acquired the shares for $11 each, bringing its total holding to 22.5 million shares, according to a regulatory filing today. Jersey City, New Jersey-based KCG was formed last year when Getco LLC merged with Knight Capital Group Inc.
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Knight was on the brink of bankruptcy from trading losses when it received $400 million through the sale of convertible shares in a deal arranged by New York-based Jefferies. Knights computers had flooded the market with unintended trades, sending dozens of stocks into spasms.
KCG shares have climbed 18 percent since Knights merger with Chicago-based Getco, a high-frequency trading firm. Jefferies held a 14 percent stake in KCG as of November 25, according to filings at the time.
Spokesmen for the two companies didnt immediately respond to requests for comment.
