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.
Tags: Leon Cooperman, New York Stock Exchange, U.S. Securities and Exchange Commission
HedgeFundSmarts 
February 18, 2014 at 12:03 pm
[…] 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. […]
April 4, 2014 at 12:29 pm
[…] Before that, he sold another batch of shares at $7.75. […]