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If you purchased shares of Knight Capital Group Inc. (NYSE:KCG) prior to November 28, 2012, and currently hold any of those NYSE:KCG shares, you have certain options and you should contact the Shareholders Foundation, Inc.
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To have your information reviewed for options and to receive notifications about this case, please send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Lawsuit Overview
Jan. 07, 2013 (Shareholders Foundation) -- An investor in shares of Knight Capital Group Inc. (NYSE:KCG) filed a lawsuit in effort to block the proposed takeover of Knight Capital Group Inc.
The plaintiff alleges that the defendants breached their fiduciary duties owed NYSE:KCG investors arising out of the attempt to sell Knight Capital Group too cheaply via an unfair process.
On Nov. 28, 2012, Knight Capital Group Inc. (NYSE:KCG) confirmed that it is in receipt of a proposal letter from Getco. Getco LLC’s cash and stock offer values Knight at $3.50 a share. Virtu Financial LLC reportedly submitted earlier a bid to buy Knight Capital Group for about $3 a share.
On Dec. 19, 2012, Knight Capital Group, Inc. (NYSE: KCG) and GETCO Holding Company, LLC announced they have entered into an agreement for a strategic business combination whereby GETCO and Knight will be combined under a new publicly traded holding company.
Under the agreement, shareholders of Knight Capital Group, Inc. (NYSE: KCG) (other than GETCO) will have the right to elect to receive $3.75 per share in cash or one share of common stock of the new holding company.
However, the plaintiff alleges that the offer is too low and unfair to NYSE:KGC stockholders. In fact, NYSE:KGC shares traded in April 2012 as high as $13.51 per share. Furthermore, Knight Capital Group’s financial performance improved recently. For instance, it reported that its annual Revenue increased from over $1.14 billion in 2010 to over $1.38 billion in 2011 and its Net Income for the respective time periods rose from $92 million to $115.24 million.