RYE BROOK, N.Y., May 23, 2002 (PRIMEZONE) -- Hoenig Group Inc. (Nasdaq:HOEN) today announced that it is postponing the special meeting of Hoenig Group Inc. shareholders to vote on the previously announced acquisition of Hoenig Group Inc. by Investment Technology Group, Inc. (NYSE:ITG).
The special meeting, which originally was scheduled for June 10, 2002, is being postponed to allow Hoenig Group Inc. and ITG to complete their reviews of the facts surrounding the previously announced $7.1 million pre-tax loss suffered by Hoenig Group Inc.'s United Kingdom brokerage subsidiary as a result of unauthorized trading by a former employee.
Hoenig Group Inc. continues to explore options to mitigate the loss, including litigation and the filing of a claim under its insurance policies. Hoenig Group Inc. stated that it has notified its insurers of the loss and is preparing a formal proof of loss under its financial institution bond. Hoenig Group Inc. reports that it maintains a total of $10 million of financial institution bond coverage, with $5 million coverage per occurrence.
For over thirty years, Hoenig Group Inc. has provided high quality trade execution, independent research and premier client service to professional money managers and alternative investment funds throughout the world. Hoenig Group Inc. operates through its brokerage subsidiaries in the United States, United Kingdom and Hong Kong. For additional information about Hoenig Group, visit www.hoeniggroup.com.
This press release contains forward-looking statements that relate to future plans, events and performance. These forward-looking statements involve risks and uncertainties, including the risk that conditions to the closing of the ITG transaction described herein will not be satisfied and the sale will not be complete and the risk that the Company will not recover on any claims filed with its insurers. These risks and uncertainties are in addition to those set forth in the Company's periodic reports and other filings with the Securities and Exchange Commission. Forward-looking statements reflect the Company's current views with respect to future events. Actual events and results may vary materially and adversely from those anticipated, believed, estimated or otherwise indicated.
Please note that the Company will be filing a definitive proxy statement with the Securities and Exchange Commission (SEC). The definitive proxy statement will be sent to the Company's stockholders seeking their approval of the proposed ITG transaction. STOCKHOLDERS OF HOENIG GROUP INC. ARE URGED TO READ THE DEFINITIVE PROXY STATEMENT WHEN IT BECOMES AVAILABLE BECAUSE IT WILL CONTAIN IMPORTANT INFORMATION. Once filed, the proxy statement and other information filed by Hoenig Group may be obtained free of charge on the Internet at the SEC Website at www.sec.gov. In addition, documents filed with the SEC by Hoenig Group will be available free of charge from the Company's Investor Relations Department, obtainable by addressing a request to: Hoenig Group Inc., 4 International Drive, Rye Brook, New York 10573, Attention: Investor Relations. Requests may also be made by telephone at (914) 935-9000.
The Company and its directors may be deemed to be participants in the solicitation of proxies from Hoenig Group stockholders in favor of the ITG transaction. These directors include Fredric P. Sapirstein, Alan B. Herzog, Max H. Levine, Robert Spiegel, Kathryn L. Hoenig, Martin F.C. Emmett and Robert L. Cooney. Collectively, as of April 25, 2002, the directors of Hoenig Group may be deemed to beneficially own approximately 46.9% of the outstanding shares of the Company's common stock. Stockholders of Hoenig Group Inc. may obtain additional information regarding the interests of participants by reading the definitive proxy statement when it becomes available.