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 Knight.
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. Contact: