Block & Leviton LLP Investigates Knight Capital Group, Inc. for Possible
Breaches of Fiduciary Duty in Connection with Its Acquisition by Getco Holding
BOSTON, Dec. 19, 2012
BOSTON, Dec. 19, 2012 /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 Knight Capital Group, Inc. ("Knight" or the "Company") (NYSE:
KCG) concerning the proposed acquisition of the Company by Getco Holding
Company, LLC ("Getco") in a cash and stock transaction.
Under the terms of the proposed merger, Getco will acquire Knight in a deal
for approximately $3.75 per Knight share or one share in the combined company,
setting a value for Knight at approximately $1.4 billion. This represents a
paltry 13% premium to the previous day's closing price. This price fails to
take into account the fact that Knight common stock is poised to recover from
the losses it suffered in August 1, 2012 due to a one-time, non-repeating
technological glitch. Indeed, the Company has already begun to recover from
the one-time loss, increasing well over twenty percent from the time of the
glitch through the announcement of the proposed transaction. As such, it
appears that the proposed transaction premium offers insufficient recognition
of Knight's growth potential. Moreover, there appear to be significant
conflicts of interest arising out of the interrelationships between Getco and
Block & Leviton's investigation seeks to determine, among other things,
whether Knight's Directors breached their fiduciary duties by failing to
maximize shareholder value in the proposed acquisition by Getco and the
overall fairness of the process by which the Knight Directors considered and
approved the transaction.
If you are a Knight shareholder 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
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