A.M. Movers: Knight Capital Plunges 27%, Best Buy SURGES 18%

Knight Capital Group (NYSE:KCG) shares plummeted more than 27 percent in this morning. The trading firm announced a $400 million deal to save the company, but it is highly diluted to shareholders. The firms involved in the rescue will buy convertible preferred stock to save Knight, which are convertible into about 270 million shares of common stock.

Shares of Best Buy (NYSE:BBY) surged 18.54 percent this morning. Founder and former chairman Richard Schulze made an offer to take the retailer private for $24-$26 per share in cash, making the deal worth around $8.6 billion. In a statement, Schulze explained, “There is no question that now is the moment of truth for Best Buy and that immediate and substantial changes are needed for the company to return to its market-leading ways. After assessing all of my options, it is my strong belief that Best Buy’s best chance for renewed success is to implement with urgency the necessary changes as a private company.” RadioShack (NYSE:RSH) shares also jumped 6.9 percent on the news.

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Tyson Foods (NYSE:TSN) shares fell 3.14 percent after reporting financial results for the third quarter. Net income fell 61.2 percent to $76 million (21 cents per share), compared to $196 million (51 cents per share) a year earlier. “We produced solid results in our fiscal third quarter despite softer than expected domestic demand for protein,” said Donnie Smith, president and chief executive officer. “I am especially pleased with the performance of our Chicken and Prepared Foods segments. Our Beef and Pork segments have been operating in very difficult market conditions that will result in our earnings for fiscal 2012 coming in lower than we previously projected.”

Chesapeake Energy (NYSE:CHK) shares dropped 1.57 percent Monday morning. The natural gas giant was downgraded to Market Perform by BMO Capital. The firm place a target of $25 on shares and explained that “these moves are prompted by what we see to be a story still chock-full of operating and financial risk.” Chesapeake reports financial results after today’s closing bell.

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