Griffin’s Overtures to Knight Were Hampered by Distrust

As time was running out, Knight Capital Group Inc. Chairman and Chief Executive Officer Thomas Joyce had three choices left -- accept a $500 million bailout from his biggest competitor, take an offer from a group of clients and others that would dilute owners, or go bankrupt.

The 57-year-old former Harvard University football star chose the second, ceding most of the company to investors led by Jefferies Group Inc. The $400 million rescue staved off insolvency as well as Ken Griffin, the billionaire founder of rival Citadel LLC whose overtures to Knight were never able to penetrate the distrust between the two firms, people with direct knowledge of the matter said.