Block & Leviton LLP Investigates KKR Financial Holdings LLC for Possible Breaches of Fiduciary Duty in Connection with Its Merger with KKR & Co LP
BOSTON, Dec. 16, 2013 Block & Leviton LLP (www.blockesq.com), a Boston-based
law firm representing investors nationwide, has commenced an
investigation into possible breaches of fiduciary duty by the Board of
Directors of KKR Financial Holdings LLC ("KKR Financial" or the
"Company") (NYSE: KFN) concerning the proposed merger of the Company
with Kohlberg Kravis Roberts & Co. L.P. ("KKR & Co.") (NYSE:
KKR) in an all-stock transaction. The investigation is also evaluating
whether KKR & Co. aided and abetted such breaches of fiduciary duty.
Under
the terms of the proposed transaction, the Company's shareholders will
receive 0.51 KKR & Co. shares for each of the Company's shares they
own. The total value for the Company is estimated at approximately $2.6 billion. The
Company was spun off by KKR & Co. approximately 9 years ago, and
several members of management of KKR & Co. and the Company have
significant longstanding ties to one another. KKR & Co. already
manages the Company's assets, and by assuming total control of the
Company, KKR & Co. expects to immediately increase its book value,
to the possible detriment of the Company's shareholders. Neither party
has publicly commented as to whether the price to the Company's
shareholders is subject to a price collar protecting the Company's
investor's interests from a decline in KKR & Co.'s stock price
following the announcement of the proposed merger.
Block
& Leviton's investigation seeks to determine, among other things,
whether the Company's Directors breached their fiduciary duties by
failing to maximize shareholder value in the proposed merger with KKR
& Co. and the overall fairness of the process by which the Company's
Directors considered and approved the transaction.
If
you are a shareholder of KKR Financial and have questions about your
legal rights, or if you have information relevant to this investigation,
please contact attorney Steven P. Harte, at (617) 398-5600 or email him at Steven@blockesq.com.
Block & Leviton is a Boston-based
law firm representing investors nationwide for violations of securities
laws. The firm's lawyers have collectively been prosecuting securities
cases on behalf of investors for over 50 years. This notice may
constitute attorney advertising.
SOURCE Block & Leviton LLP
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