AP News

Harbinger shares drop more than 25 percent

NEW YORK (AP) — Harbinger Group Inc.'s stock sank Thursday after a big sale of the company's stock by its controlling shareholder priced at a 27 percent discount.

The New York holding company is run by hedge fund billionaire Philip Falcone. His fund, Harbinger Capital Partners LLC, owned nearly 130 million shares of Harbinger Group at the end of September, or 93 percent of the company's outstanding stock.

The company said Thursday that funds affiliated with Harbinger Capital Partners priced 20 million shares at $7.50 each. The stock closed Wednesday at $10.22.

The banks managing the offering may buy another 3 million shares.

The company itself, which has insurance subsidiaries and invests in George Foreman grill owner Spectrum Brands, will not receive proceeds from the offering.

Harbinger's shares fell $2.72, or 27 percent, to $7.50 Thursday afternoon. Prior to news of the offering, its shares had more than doubled this year.

Too Cool for Crisis Management
blog comments powered by Disqus