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Tue Dec 18, 2012, 02:35 AM

Cerberus to Sell Gunmaker Freedom Group After U.S. School Shooting

Source: Reuters

Cerberus to sell gunmaker Freedom Group after U.S. school shooting

Tue Dec 18, 2012 1:23am EST

(Reuters) - U.S. private equity firm Cerberus Capital Management said on Tuesday it will immediately begin selling its investment in gunmaker Freedom Group in light of last week's school shooting in Connecticut.

Cerberus acquired Bushmaster in 2006 and later merged it with other gun companies to create Freedom Group, which reported net sales of $677.3 million for the nine months ending September 2012, up from $564.6 million in the same period a year ago.

- snip -

"We do not believe that Freedom Group or any single company or individual can prevent senseless violence or the illegal use or procurement of firearms and ammunition," Cerberus said in a statement.

- snip -

Pressure mounted on Cerberus as the California State Teachers' Retirement System (CalSTRS) said on Monday it was reviewing its investment with the private equity firm in light of the Connecticut school shooting.

Read more: http://www.reuters.com/article/idUSBRE8BH08F20121218

19 replies, 3248 views

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Arrow 19 replies Author Time Post
Reply Cerberus to Sell Gunmaker Freedom Group After U.S. School Shooting (Original post)
Hissyspit Dec 2012 OP
elleng Dec 2012 #1
Tx4obama Dec 2012 #2
elleng Dec 2012 #4
Skittles Dec 2012 #3
ProgressiveProfessor Dec 2012 #5
SkyDaddy7 Dec 2012 #6
ProgressiveProfessor Dec 2012 #15
Kolesar Dec 2012 #7
hatrack Dec 2012 #8
klook Dec 2012 #9
dipsydoodle Dec 2012 #13
Heywood J Dec 2012 #16
leveymg Dec 2012 #10
Kolesar Dec 2012 #14
MNBrewer Dec 2012 #11
Chorophyll Dec 2012 #12
csziggy Dec 2012 #17
Rhiannon12866 Dec 2012 #18
lovuian Dec 2012 #19

Response to Hissyspit (Original post)

Tue Dec 18, 2012, 02:40 AM

1. Good. Thought so.

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Response to Hissyspit (Original post)

Tue Dec 18, 2012, 02:41 AM

2. Wow! That was quick! n/t

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Response to Tx4obama (Reply #2)

Tue Dec 18, 2012, 02:57 AM

4. Figured California Teachers' Union wouldn't stand for it.

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Response to Hissyspit (Original post)

Tue Dec 18, 2012, 02:53 AM

3. let the hits keep coming

I want these gun nut bastards to realize their paranoia and ignorance is NOT mainstream

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Response to Hissyspit (Original post)

Tue Dec 18, 2012, 03:39 AM

5. The gun business is not a high margin business

But they won't sell it at a loss. Lets check back in 3 months and see where it stands

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Response to ProgressiveProfessor (Reply #5)

Tue Dec 18, 2012, 04:54 AM

6. They could sell now at a huge profit...

From which they bought it if publicly traded firearm companies stock price are any hint at the stock price of privately held companies like these are.

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Response to SkyDaddy7 (Reply #6)

Tue Dec 18, 2012, 11:41 AM

15. Not so sure after this...

Again, we shall see.

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Response to ProgressiveProfessor (Reply #5)

Tue Dec 18, 2012, 06:11 AM

7. ^NRA types know better

And are eager to express it.
I presume that you are also a stock analyst?

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Response to Hissyspit (Original post)

Tue Dec 18, 2012, 08:02 AM

8. "Freedom Group" Jesus Christ . . .

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Response to Hissyspit (Original post)

Tue Dec 18, 2012, 08:16 AM

9. I just contacted my IRA provider

to find out if any of their funds are invested in gun manufacturers or the weapons industry, and I suggest everyone do the same.

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Response to klook (Reply #9)

Tue Dec 18, 2012, 09:17 AM

13. IRA ?



I assume you mean a different one.

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Response to dipsydoodle (Reply #13)

Tue Dec 18, 2012, 06:36 PM

16. In the US, it's Individual Retirement Account. (NT)

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Response to Hissyspit (Original post)

Tue Dec 18, 2012, 08:17 AM

10. Cerberus' interesting history: vulture cap firm involved in the Madoff, MCI, GOP, Israeli scandals.

Cerberus has been a major player is virtually every major financial and political scandal in the US and Israel during the past decade. It's a prime mover of financial corruption, destruction of US firms, speculation in arms manufacturers, and foreign money and influence peddling into the political processes of the U.S. and Israel benefiting the Republican and Likud parties.

Please see, http://journals.democraticunderground.com/leveymg/544 ; also, see,
http://www.dailykos.com/story/2007/03/10/310286/-Larger-CIA-and-DoD-Privatization-Scandal-Emerging-from-Walter-Reed-Story-US-Attorneys-Firing

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Response to leveymg (Reply #10)

Tue Dec 18, 2012, 10:35 AM

14. Eliot Spitzer identified Cerberus' gun holdings and said that pension funds should pressure them

...to sell their positions in the gun makers. He expected the California teachers' pension fund to be the first.

That was last night on his show on Current TV.

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Response to Hissyspit (Original post)

Tue Dec 18, 2012, 09:05 AM

11. People who think there are plenty of guns in this world

should band together and buy it. Then liquidate it.

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Response to Hissyspit (Original post)

Tue Dec 18, 2012, 09:06 AM

12. K&R. This proves that making noise works.

Keep it up. No let up. Signing those electronic petitions doesn't feel like much, but they add up. Keep writing and calling Congress too. Again, it doesn't feel like much, but obviously note is being taken.

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Response to Hissyspit (Original post)

Tue Dec 18, 2012, 07:54 PM

17. Direct link to Newton with CEO's father resident!

Cerberus: We want out of gun biz
By Dan Primack December 18, 2012: 6:30 AM ET
<Skip to end>
What we still don't know if what pressure, if any, Cerberus limited partners brought to bear on the firm since last Friday. Yesterday we reported that one of the largest investors in Cerberus private equity funds was the California State Teachers' Retirement System, which subsequently said it would review its indirect investment in Freedom Group (it made no such pledge following the Aurora shooting, where a Bushmaster rifle also was used).

Truth is, however, an LP like CalSTRS really can't do much after the original fund commitment is made, save for a secondary sale of its entire fund stake (which is why I argued it should have been proactive, rather than reactive). Unless, of course, it and others helped prod Cerberus into this morning's decision -- reminding the firm that they sometimes want their fund managers to focus more on the sense than the dollars.

Update: Bloomberg is reporting that the father of Cerberus founder and CEO Stephen Feinberg is a resident of Newtown, Connecticut. No word yet on if this factored into the firm's decision-making process...
More: http://finance.fortune.cnn.com/2012/12/18/cerberus-we-want-out-of-gun-biz/


Emphasis added.

I guess even some private equity guys take it seriously when it comes close to their own family!

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Response to Hissyspit (Original post)

Tue Dec 18, 2012, 10:12 PM

18. Isn't Cerberus the three-headed dog that guards the entrance to the underworld?!

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Response to Rhiannon12866 (Reply #18)

Tue Dec 18, 2012, 10:59 PM

19. Cerberus is the three headed dog guarding the gates of Hades Your right

and the Bushmaster logo on the gun ....is a red deadly serpent

all dark images dealing with death

the dog Cerberus played a part in Harry Potter
Chamber of Secrets

the dog guarded the chamber of secrets where the BASILISK lived...which was a poisonous Serpent or snake

The Cerberus owner lives in Sandy Hook but I heard the author of Hunger Games lives there too
it is on wikipedia

Hunger games is about children from different districts being sacrificed every year as a lesson for all districts ...to tow the line
and not rebel

it is a coincidence isn't it

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