Levi & Korsinsky, LLP Investigates Possible Breach of Fiduciary Duty by the Board of Allied Capital Corp. - ALD

Levi & Korsinsky is investigating the Board of Directors of Allied Capital Corp. ("Allied Capital” or the "Company”) (NYSE: ALD) for possible breaches of fiduciary duty and other violations of state law in connection with their attempt to sell the Company to Ares Capital Corp. ("Ares Capital") (NasdaqGS: ARCC). Under the terms of the transaction, Allied Capital shareholders will receive 0.325 Ares Capital shares for every Allied Capital share they own which, based on the $10.69 per share closing price of Ares Capital stock on October 23, 2009, the last trading day prior to the announcement, values Allied Capital at approximately $3.47 per share for a total transaction value of approximately $648 million.

The investigation concerns whether the Allied Capital Board of Directors breached their fiduciary duties to Allied Capital shareholders given that (i) the Company's stock has traded at $4.10 per share as recently as August 3, 2009 and has traded at a 52-week high of $7.87; (ii) the average share price of Ares capital stock for the six-month period prior to the announcement is approximately $8.77 which would imply a share value for Allied Capital of only $2.85 per share; (iii) the Company has a book value of approximately $7.49 a share; and (iv) analysts have set a mean price target for Allied Capital stock at $3.75 per share with at least one analyst setting a $4.50 price target.

If you own common stock in Allied Capital and wish to obtain additional information, please contact us at the number listed below or visit http://www.zlk.com/ald1.html.

Levi & Korsinsky has expertise in prosecuting investor securities litigation and extensive experience in actions involving financial fraud and represents investors throughout the nation, concentrating its practice in securities and shareholder litigation.