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Nov. 5, 2012 /PRNewswire/ -- Block & Leviton LLP (
Boston-based law firm representing investors nationwide, has commenced an investigation into possible breaches of fiduciary duties by the Board of Directors of KBW, Inc. ("KBW" or the "Company") (NYSE KBW) with regards to the proposed acquisition of the Company by Stifel Financial Corp. ("Stifel") in a cash and stock transaction scheduled to close in early 2013.
Under the terms of the agreement, Stifel will acquire KBW in a cash tender offer for approximately
$17.50 per share, which will be paid by
$10 in stock and
$7.50 in Stifel stock representing a total purchase price of approximately
$575 million. This represents a paltry premium of 7.3% to the closing price of
Friday, November 2 2012. Moreover, KBW stock traded above the offer price as recently as
September 24, 2012, when it reached
$17.69 a share, and its 52 week high is
$19.27. Indeed, the average analyst's target price for KBW is
$20.50 per share, representing a
negative premium of over 17% should shareholders accept the offer.
Thomas B. Michaud, KBW's chief executive, is expected to join Stifel's board, and will continue to lead KBW as a separate business division.
Block & Leviton's investigation seeks to determine, among other things, whether KBW's Directors breached their fiduciary duties by failing to maximize shareholder value in the proposed acquisition by Stifel, and the fairness of the process by which the KBW Directors considered and approved the transaction.
If you are a KBW 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
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.