BOSTON, Dec. 16, 2013 /PRNewswire/ -- 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.
BLOCK & LEVITON LLP
Steven P. Harte, Esq.
SOURCE Block & Leviton LLP