Knight Capital expects to make a decision on its future ownership by early next week, according to people familiar with the matter.
Rival trading firms Getco LLC and Virtu Financial LLC, which have submitted bids to buy the Jersey City, N.J., company, are fine-tuning their takeover proposals for Knight. Final offers are expected to be handed to Knight ‘s board and investors by the end of this week, the people said.
Knight could decide to spurn both offers, remain independent or possibly sell off less-profitable businesses, people involved in the discussions said.
The race for Knight has shown signs of tightening as directors spent the past two weeks reviewing the competing proposals, which value Knight at as much as $1.8 billion. A spokeswoman for the firm declined to comment.
Knight is reviewing offers more than four months after a software-driven trading error resulted in a $461 million loss for the firm, forcing it to seek rescue financing from a group of six financial firms that included Getco.