Bloomberg Anywhere Remote Login Bloomberg Terminal Demo Request


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

Bloomberg Customers


Cash That Won't Flee

Coping with requests from investors who want to withdraw money from his hedge funds, Falcone has turned to the stock and bond markets for cash to fund future purchases. Here's how

The Shell Company

Falcone's Harbinger Capital Partners paid $74 million for a 51.6 percent stake in Zapata, a onetime oil driller with no operations that is listed on the New York Stock Exchange. It reincorporated as Harbinger Group in December 2009.

The Funding

Harbinger's hedge funds plan to give Harbinger Group most of their stake in publicly traded Spectrum Brands, in exchange for additional stock in Harbinger Group. The funds will end up owning 93 percent of Harbinger Group, which will hold Spectrum Brands shares worth about $767 million.

The Bond Sale

In November, Harbinger Group sold $350 million of five-year bonds yielding 11 percent, backed by the Spectrum Brands shares it is getting from the Harbinger funds.

The Strategy

According to filings, Falcone will use Harbinger Group's cash and ability to issue stock to buy "controlling equity stakes" in companies that operate in six industries: consumer products, insurance and financial products, telecom, agriculture, power generation, and water and natural resources.

blog comments powered by Disqus