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Knight regains market share

Knight Capital Group Inc.

Knight Capital Group Inc. regained some of the market share it lost after a huge trading shortfall last week nearly forced it out of business, and the New York Stock Exchange said Tuesday it would reinstate Knight's full market-making duties as of next week.

Knight, which secured a $400 million bailout from a group of independent investors in exchange for a 73 percent stake, may have turned down a more lucrative rescue bid that might have had less of an effect on shareholders from hedge fund Citadel LLC, sources familiar with negotiations said on Tuesday.

Knight and its bankers talked to about 90 potential suitors in the five days between the trading error and completion of the deal Monday.

The deal Knight signed was the only one that could have been completed and announced before markets opened Monday, according to two sources.