Harbinger Group Inc., the holding company run by Philip Falcone, fell the most on record after his hedge fund sold shares in the company at a discount.
Harbinger declined 27 percent to $7.50 at 3:05 p.m. in New York. Harbinger Capital Partners Master Fund I Ltd., Harbinger Capital Partners Special Situations Fund LP and Global Opportunities Breakaway Ltd. sold 20 million shares at $7.50 each, Harbinger Group said today in a statement.
Falcone didn’t immediately return a telephone call seeking comment.
Before today, Falcone and his funds held 129.9 million Harbinger shares, or about 68.9 percent of the company’s common stock, assuming the conversion of preferred shares, according to filings with the U.S. Securities and Exchange Commission.
Falcone set up Harbinger Group as a holding company that he could use to tap public debt and stock markets in order to fund investments in companies engaged in six different industries, ranging from insurance to consumer products and power generation. Harbinger Group owns a majority stake in Spectrum Brands Holdings Inc., a maker of batteries, pet food and lawn care products.
Jefferies & Co. and Cantor Fitzgerald & Co. underwrote the stock sale. They have an option to purchase another 3 million shares from Falcone’s funds for the next 30 days.