Falcone Sells Harbinger

Chidem Kurdas

In the past week Philip Falcone sold one million shares of Harbinger Group Inc., the NYSE-listed holding company largely owned by the funds he controls. The beleaguered manager is winding down the funds to pay back his long-suffering investors, as required by an agreement with the U.S. Securities and Exchange Commission.

He received $7.75 per share. Latest quote today for Harbinger Group was $9.89.

Harbinger funds presumably still own a big stake in the public company. Mr. Falcone, who controlled 74.2% of the stock, had wanted to sell 20 million or more shares in a secondary public offering, but so far that has not happened.

He may continue to sell the shares in private or public deals.

A number of hedge funds, including Leon Cooperman’s Omega, were holding Harbinger Group at the end of the second quarter. Last month the company started a $50 million stock repurchase.

Meanwhile, Harbinger Group is planning a $100 million initial public offering for an insurance business it owns, according to the WSJ.

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2 Responses to “Falcone Sells Harbinger”

  1. Falcone Forced to Sell Harbinger Cheap | HedgeFundSmarts Says:

    […] A previous sale fetched a higher price at $7.75. The option holder who brought this month got a better deal than that, especially considering that the market price rose substantially since the earlier transaction. […]

  2. Falcone Harbinger Deal Below Market Price | HedgeFundSmarts Says:

    […] Before that, he sold another batch of shares at $7.75. […]

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