December 18, 2013 (Shareholders Foundation) - An investigation on behalf of investors, who currently hold shares of KKR Financial Holdings LLC (NYSE:KFN) shares, was announced concerning whether the takeover of KKR Financial Holdings LLC by KKR & Co. L.P. for a value of $12.79 per share is unfair to NYSE:KFN stockholders.

The investigation by a law firm concerns whether certain officers and directors of KKR Financial Holdings LLC breached their fiduciary duties owed to NYSE:KFN investors in connection with the proposed acquisition.

On December 16, 2013, KKR & Co. L.P. and KKR Financial Holdings LLC announced the signing of a merger agreement where KKR & Co. L.P. will acquire KKR Financial Holdings LLC through a stock-for-stock merger that values KKR Financial Holdings LLC at $2.6 billion. Under the agreement shareholders of KKR Financial Holdings LLC will receive 0.51 common units of KKR & Co. L.P. for each common share of KKR Financial Holdings LLC. Based on KKR & Co. L.P.'s closing price as of December 16, 2013, the exchange ratio equates to a value of $12.79 per common share of KKR Financial Holdings LLC.

However, the investigation concerns whether the $12.79-offer is unfair to NYSE:KFN stockholders. More specifically, the investigation concerns whether the KKR Financial Holdings Board of Directors undertook an adequate sales process, adequately shopped the company before entering into the transaction, maximized shareholder value by negotiating the best price, and acted in the shareholders' best interests in connection with the proposed sale.

NYSE:KFN shares grew from $0.48 per share in early 2009 to as high as $11.42 per share in early 2013.

On December 18, 2013, NYSE:KFN shares closed at $12.23 per share.