(Adds Anthem, EDP, Televisa, Novo Banco, Frontline, Societe Generale, Schroders and National Aluminium; updates Virtu Financial)

April 20 (Reuters) - The following bids, mergers, acquisitions and disposals were reported by 2000 GMT on Thursday:

** Virtu Financial Inc said it would buy rival KCG Holdings Inc in a $1.4 billion deal that brings together two major players in the U.S. electronic trading space.

** Germany’s Beiersdorf, the maker of Nivea skin cream, still prefers hoarding cash to fund possible acquisitions over raising its dividend, supervisory board Chairman Reinhard Poellath told shareholders.

** Sanofi is looking at potential acquisitions of devices, such as blood glucose testing kits, to boost its diabetes business, a senior executive at the French drugmaker said.

** Western Digital Corp, the U.S. partner of Toshiba Corp in a semiconductor venture, is in talks with state-backed fund Innovation Network Corp of Japan and the Development Bank of Japan and would consider a joint bid with them for the chip business, a senior official said.

** The British government said it will sell the Green Investment Bank to a consortium led by Macquarie Bank in a deal worth 2.3 billion pounds ($3 billion), which critics said failed to guarantee its future.

** Japan’s Sawai Pharmaceutical Co Ltd is buying the generic drug business of U.S. drug maker Upsher-Smith Laboratories Inc for $1.05 billion, marking the Osaka-based generic drugmaker’s first overseas acquisition.

** Chinese tech conglomerate LeEco is in talks to sell a prized property asset in the heart of Beijing it acquired in a $420 million deal last year, the latest effort by the electric car-to-smartphone behemoth to raise funds amid a severe cash crunch.

** Belgian publisher Mediahuis and partner VP Exploitatie have launched a recommended cash offer for the Netherlands’ Telegraaf Media Group, the three parties said in a statement, as they try to build a Dutch-Belgian multimedia company.

** Mubadala Capital, an arm of Abu Dhabi’s state fund Mubadala, said it had conducted a private equity transaction with European fund manager Ardian, which had committed to invest $2.5 billion in the deal.

** German glasses retailer Fielmann could pursue takeovers in the future, marketing chief Marc Fielmann, the son of company founder Guenther Fielmann, told magazine Capital in an interview.

** Shares in Italian toll-road operator Atlantia extended losses in early afternoon following a downgrade by Deutsche Bank, which highlighted the risks of a possible combination with Spanish rival Abertis.

** Spain’s Banco Popular CEO Ignacio Sanchez-Asiain said the lender’s current priority is the sell off of non-performing real estate assets as it fights to return to profits and improve its capital.

** Brazilian police conducted raids on Wednesday as part of an investigation of state-controlled Caixa Econômica Federal’s purchase of a stake in a consumer lender six years ago, the latest scandal rocking the nation’s largest mortgage lender.

** India raised 12 billion rupees ($185.7 million) from a 9.2 percent stake sale in state-run National Aluminium Co (NALCO), the government said, kicking off its asset sale programme for the new financial year.

** British asset manager Schroders said it had agreed to buy Swiss-based private equity firm Adveq Holding for an undisclosed sum.

** Croatia’s competition regulator AZTN has approved the sale of Splitska Banka by Societe Generale to the local unit of Hungary’s OTP Group, increasing OTP’s market share in Croatia to over 10 percent.

** A U.S. court has rejected a last-minute effort by billionaire investor John Fredriksen’s Frontline to prevent BW Group from acquiring a major stake in rival oil tanker firm DHT Holdings, DHT said.

** A failed bidder for Portugal’s third-largest lender Novo Banco has asked its lawyers to block the 1 billion euro ($1.08 billion) sale to U.S. fund Lone Star and told the central bank it should relaunch the bidding.

** Health insurer Anthem Inc denied a report on Thursday that it was in negotiations with the Justice Department in an effort to save its merger with smaller rival Cigna Corp .

** Mexican broadcaster Televisa said it had signed a deal with Spanish telecoms giant Telefonica that would give the mobile operator’s customers cheaper access to the broadcaster’s content carried on its digital platform Blim.

** London hedge fund firm Ecofin said an offer from Portugal’s largest company EDP to buy 22.47 percent of subsidiary EDP Renovaveis “significantly undervalues” the company, in a letter to EDPR’s board seen by Reuters. (Compiled by Ahmed Farhatha and Divya Grover in Bengaluru)</s>Travelers Cos. earnings fell in the first quarter as tornadoes, hail storms and icy weather caused significant catastrophe losses.

Virtu Financial Agrees to Buy KCG Holdings for $1.4 Billion

High-speed trading firm Virtu Financial Inc. reached a deal to acquire rival KCG Holdings Inc. for $1.4 billion in cash, a tie-up that would create an electronic trading giant responsible for around one-fifth of volume in U.S. equities.

The U.K. government sold the Green Investment Bank to a consortium led by Australian bank Macquarie Group, in a deal that was delayed by political opposition to the sale of the state-backed renewable energy fund.

The Trump administration appears unlikely to upend decades of global financial cooperation by scorning the International Monetary Fund and World Bank, a source of comfort to central bankers and finance ministers gathering this week in Washington.

Blackstone Posts Its 'Best Quarter' for Realizations

Blackstone Group's first-quarter profit rose more than expected, as buoyant markets fueled appreciation in the firm's investments and enabled it to sell prior years' holdings at a record pace.

Big fund managers are for the first time saying they are comfortable with including domestic Chinese equities in key global indexes, a sign that the mainland's large stock markets may finally be coming of age.

U.S. Rate Increases Have Smaller Impact on China's Capital Flows

U.S. interest-rate increases are having a smaller impact on China's capital flows than before, the country's foreign-exchange regulator said.

U.S. Bancorp plans on May 1 to launch a premium card geared toward high spenders and millennials, adding to the threats facing American Express in a card category where it was until recently unrivaled.

Volcker Open to Tweaking Dodd-Frank, but Not the Volcker Rule

Former Federal Reserve Chairman Paul Volcker, known as a champion of postcrisis financial rules, said Wednesday he was open to making some changes to the Dodd-Frank regulatory-overhaul law-but not his namesake rule.

Hearing on GOP Plan to Overhaul Dodd-Frank, CFPB Set for Next Week

The Republicans' blueprint for revamping the 2010 Dodd-Frank Act and the Consumer Financial Protection Bureau is set for a hearing next week, kicking off what is likely to be a fierce debate over loosening regulations for Wall Street.</s>Virtu Financial said it would buy rival trading firm KCG Holdings Inc for about $1.4 billion in cash.

Virtu Financial's offer of $20 per share represents a 12.7 percent premium to KCG's Wednesday close.

This is a developing story and will be updated.</s>Virtu Financial said it would buy rival KCG Holdings in a $1.4 billion deal that brings together two major players in the U.S. electronic trading space.

The deal comes at a difficult time for high-frequency trading as low volatility squeezes the profits it can make from rapid-fire trades.

Virtu's offer of $20 per share represents a 12.7 percent premium to KCG's Wednesday close.

Shares of KCG hit a record high of $19.73 in early trading on Thursday, while shares of Virtu were up about 8 percent.

"KCG fits perfectly with Virtu's strategic priorities to apply our market making and technological expertise to customer wholesale order flow and expand Virtu's growing agency execution business," Virtu Chief Executive Douglas Cifu said in a statement.

KCG was formed in December 2012 from the merger of New Jersey-based Knight Capital Group — a pioneer of electronic market making — and Chicago-based Getco.

Virtu makes markets in 36 countries and 12,000 financial instruments, continuously quoting buy and sell prices for others to trade against, profiting off the bid-offer spread, using high-frequency trading (HFT) strategies.

HFTs use sophisticated technology and algorithms to trade stocks and other assets at near-light speed and are responsible for around half of the volume in U.S. equities and Treasuries, and nearly that in spot foreign exchange.

Virtu said it expects to migrate trading of the combined company onto a single platform.

The deal will be financed through stock sale worth $750 million to private equity firm North Island and Temasek and borrowings of $1.65 billion from JPMorgan Securities.

The combined company will be led by Cifu. Robert Greifeld and Glenn Hutchins, principals at North Island, will join the board after the deal.

KCG also reported an 88 percent fall in first-quarter profit, hurt by low market volatility.

The transaction is expected to close in the third quarter after approval from KCG shareholders and regulators.

JPMorgan Securities was the lead financial adviser to Virtu, while KCG was advised by Goldman Sachs.

CORRECTION: This article has been updated to clarify that borrowings from JPMorgan will be

$1.65 billion not $125 million, and stock worth $750 million not $625 million will be

sold to North Island and Temasek.</s>(Reuters) - High-speed electronic trading firm Virtu Financial Inc said it would buy rival KCG Holdings Inc in a $1.4 billion deal, helping Virtu bolster its businesses that have softened under reduced market volatility.

Virtu's offer of $20 per share represents a 12.7 percent premium to KCG's Wednesday close.

Shares of New York-based Virtu were up about 5 percent in premarket trading on Thursday, while that of KCG were up 10.2 percent.

Virtu said it expects to migrate trading of the combined company onto a single platform.

The market maker said it expects the deal to add over 25 percent to its earnings per share.

The transaction is expected to close in the third quarter after approval from KCG shareholders and regulators.

Virtu plans to fund the deal with new gross borrowings of $1.65 billion and the sale of $750 million of common stock, priced at $15.60 per share.

Private equity firm North Island will invest $625 million in Virtu stock in partnership with Singapore sovereign wealth fund GIC and Canadian pension investment manager Public Sector Pension Investment Board.

Temasek, an existing Virtu shareholder, will invest an additional $125 million.

JPMorgan Securities LLC will provide up to $1.65 billion of debt financing for the deal. (Reporting by Sruthi Shankar in Bengaluru; Editing by Maju Samuel)

Read the original article on Reuters. Copyright 2017. Follow Reuters on Twitter.</s>Electronic trading company Virtu Financial (VIRT) has announced an agreement to acquire KCG Holdings (KCG) for $1.4 billion in cash.

KCG brings wholesale and independent agency execution capabilities while providing the opportunity for significant cost savings.

As trading competition escalates, the deal is a harbinger of consolidation to achieve scale and cost synergies.

New York-based KCG was founded originally as Knight Capital Group in 1995 to provide high-frequency trading capabilities to financial firms.

In 2012, the firm was acquired by Getco, which then formed KCG Holdings shortly after that.

Management is headed by CEO Daniel Coleman and CFO Steffen Parratt, who will each remain CEO and CFO of the combined firm post-acquisition.

Below is a brief demo video about KCG’s trade execution proposition:

KCG has over 1,100 employees in offices in the U.S., western Europe and Asia.

Virtu intends to acquire KCG for $20 per share, or $1.4 billion in an all cash transaction.

The deal will be funded through new gross borrowings of $1.65 billion [via J.P. Morgan Securities] and the sale of $750 million of common stock, priced at $15.60 per share.

In addition, a syndicate comprised of North Island, GIC Singapore and PSP Investments will invest $625 million in Virtu common stock. Existing shareholder Temasek will invest $125 million in common stock. Both commitments are subject to a successful transaction closing.

North Island is a special purpose vehicle begun by Glenn Hutchins and Bob Griefeld, who will be joining the board concurrently with the transaction close.

Virtu management states that the deal will add scale and cost savings:

Furthermore, according to Virtu management’s investor presentation on the deal, it promises to provide ‘over 25% accretion to Virtu earnings per share with fully-phased cost savings and capital synergies.'

The acquisition also seeks to combine KCG’s independent agency execution and wholesale market making focus with Virtu’s order routing and liquidity offerings.

In an increasingly competitive environment, Virtu is saying that scale matters. Tight margins are making life difficult for high-frequency traders.

Combining operations will help reduce expenses, which have ballooned in recent years during an ‘arms race’ to provide more data and ever faster executions to clients.

The deal provides Virtu with exposure to KCG’s ’retail wholesaler’ market, which enables high-frequency firms to pay online brokerages to execute orders from small, retail investors.

The combined group is a promising concept that looks good on paper. The question is whether it can integrate and grow its operations, especially in an uncertain macro market environment.

I write about M&A deals and IPOs. Click the Follow button next to my name at the top or bottom of this article if you want to receive future articles automatically.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.</s>Shares of KCG Holdings Inc. soared 11% toward a record high in premarket trade Thursday, after the securities trading company agreed to be acquired by Virtu Financial Inc. in a deal valued at $1.4 billion. Under terms of the deal, Virtu will pay $20 for each KCG share outstanding, which is 13% above Wednesday's closing price of $17.74. Virtu plans to fund the deal by borrowing $1.65 billion and with the sale of $750 million worth of its stock at $15.60 a share, which is 4.3% above Wednesday's closing price of $14.95. Virtu expects the deal, which is seen closing during the third quarter, to eventually boost earnings per share by 25%. Separately, Virtu said it expects to first-quarter total revenue of $147.3 million and net income of $21.3 million. Virtu's stock surged 4.7% ahead of the open. Year-to-date, KCG shares have run up 34% through Wednesday, while Virtu's stock has lost 6.3% and the S&P 500 has gained 4.4%.</s>* Virtu financial, inc. Agrees to acquire kcg holdings, inc

* Virtu financial -virtu has agreed to acquire kcg in a cash transaction valued at $20.00 per kcg share, or a total of approximately $1.4 billion

* Virtu financial - transaction expected to close during q3 in 2017 after receipt of kcg shareholder approval and all required regulatory approvals

* Virtu financial inc - within two years of completion of deal , virtu expects to realize about $208 million of net pre-tax expense savings

* Deal has been unanimously approved by the board of directors of each company

* Virtu financial - virtu intends to maintain its annual dividend of $0.96 per share after the close of the transaction

* Virtu financial - following the close of the transaction, douglas a. Cifu, virtu ceo, will remain ceo of the combined company

* Virtu financial inc says intends to fund cash transaction & debt refinancing with new gross borrowings of $1.65 billion and sale of $750 million of stock

* $750 million will be financed through the issuance of common stock at $15.60 per share

* Virtu financial inc - joseph a. Molluso, virtu cfo, will remain the cfo of the combined company

* Virtu financial inc - within two years of completion of deal , virtu expects to realize $440 million of capital synergies

* Virtu financial - also entered into a commitment with j.p. Morgan securities llc, to provide up to $1.65 billion of debt financing for the transaction

* Virtu financial - following deal close, combined co board will consist of 10 directors, including 8 of 10 members currently serving on virtu board

* Virtu financial inc - 2 new members from north island, robert greifeld and glenn hutchins, will join virtu’s board of directors

* Virtu financial inc - over 25% accretion to virtu earnings per share with fully-phased cost savings and capital synergies following deal

* Virtu financial - north island will invest $625 million in virtu common stock, in partnership with gic and public sector pension investment board

* Virtu financial - temasek has committed to invest an additional $125 million in virtu common stock Source text for Eikon: Further company coverage:

Read the original article on Reuters. Copyright 2017. Follow Reuters on Twitter.</s>Shares ofKCG Holdings (NYSE: KCG) are up just over 11% as of 10:30 a.m. EDT Thursday, after the company announced it had reached an agreement to be acquired byVirtu Financial, Inc. (NASDAQ: VIRT)for $20 per share.

Virtu made a failed bid at KCG Holdings' predecessorin 2012, when Knight Capital Group lost $440 million from a computer glitch. Last month, Virtu made an unsolicited offer to purchase KCG Holdings for $18.50 to $20 per share.

Virtu has had its eyes on KCG since 2012, when KCG's predecessor experienced a massive trading loss due to a computer glitch. Image source: Getty Images.

The deal will combine two leading market markers in financial markets around the world. KCG Holdings generates the bulk of its revenue as a market maker in U.S. stocks, whereas Virtu generates the bulk of its revenue in global fixed income, currency, and commodities markets, and non-U.S. stocks.

In a presentation to investors, Virtu Financial explained that the combined company could eliminate $250 million in annual expenses, slightly offset by a $42 million decrease in revenue, for net cost savings of $208 million annually.

In 2019, the company forecast a "base case" in which its acquisition of KCG Holdings would add approximately $147 million to after-tax earnings. Additional cost savings of $10 million to $15 million could be realized from exchange and prime broker fee synergies, according to Virtu's presentation.

Virtu Financial anticipates the acquisition will close in the third quarter of 2017, following KCG stockholder approval and regulatory clearance. At a recent price of $19.74 per KCG Holdings share, Wall Street is valuing the company at a 1.3% discount to the announced acquisition price, a small discount that reflects little perceived risk that the deal falls through.

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Jordan Wathen has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.</s>Mitessh Thakkar of miteshthacker.com suggests buying Emkay Global Financial Services and Equitas Holdings.

Mitessh Thakkar of miteshthacker.com told CNBC-TV18, "Emkay Global Financial Services is a buy with a stop loss of Rs 83 for target of Rs 95."
American high-speed electronic trading company Virtu Financial agrees to buy its rival KCG Holdings for $1.4 billion.