KKR Financial Holdings LLC
Acquisition of KKR Financial Holdings LLC by KKR & Co. L.P. May Not Be in Shareholders’ Best Interests
Robbins Arroyo LLP is investigating the acquisition of KKR Financial Holdings LLC (NYSE: KFN) by KKR & Co. L.P. (NYSE: KKR). On December 16, 2013, the two companies announced the signing of a definitive merger agreement pursuant to which KKR will acquire KKR Financial through a stock-for-stock transaction under which KKR Financial shareholders will receive 0.51 shares of KKR stock for each share of KKR Financial stock. Based on KKR’s stock price on December 16, 2013, KKR Financial shareholders will receive the equivalent of $12.79 per share.
Is the Proposed Merger Best for KKR Financial and Its Shareholders?
Robbins Arroyo LLP’s investigation focuses on whether the board of directors at KKR Financial is undertaking a fair process to obtain maximum value and adequately compensate KKR Financial shareholders in the merger.
As an initial matter, KKR is the former parent of KKR Financial and currently manages KKR Financial’s assets through its wholly owned subsidiary, KKR Financial Advisors LLC. Further, the two companies’ management teams continue to enjoy close ties to one another as KKR’s CEO, Craig J. Farr, is a member of both KKR and KKR Financial Advisors. Moreover, members of KKR also sit on the board of KKR Financial.
Given these facts, Robbins Arroyo LLP is examining the KKR Financial board of directors’ decision to sell the company to KKR now rather than allow shareholders to continue to participate in the company’s continued success and future growth prospects, and whether they are seeking to benefit themselves.
KKR Financial shareholders have the option to file a class action lawsuit to ensure the board of directors properly evaluates the proposal to obtain the best possible price for shareholders and the disclosure of material information.
KKR Financial shareholders interested in information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.