Leucadia National Corp buys USD 158 million worth of Harbinger Group shares from Falcone's hedge funds

September 28
8:31 AM 2013

Leucadia National Corp purchased USD 158 million worth of Harbinger Group Inc shares from three hedge funds run by Philip Falcone's Harbinger Capital Partners. The funds sold a total of 18.6 million shares for USD 8.50 per share, according to a filing to the Securities and Exchange Commission. Leucadia holds a 13% stake in Harbinger Group. According to data gathered by Bloomberg, the deal made Leucadia the second-largest stakeholder in the firm.

In August, Falcone and Harbinger Capital said it would comply with investor redemptions in an USD 18 million settlement agreement reached with the Securities and Exchange Commission. The redemption would be supervised by an independent monitor. Falcone would also be banned from the securities industry for five years. He also admitted to improperly using fund money to pay his personal income taxes.

According to the regulatory filing, Falcone's hedge funds also sold a total of 5.1 million shares to other investors.

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