Harbinger Spectrum Brands Stock
Falcone, Harbinger Sued Over Stock Swap with Spectrum
Now he is planning to increase his stake to 94 percent from 51.6 percent by swapping 120 million newly issued shares of Harbinger for about 27.8 million shares of Spectrum Brands, a large holding in his hedge funds.
Falcone's hedge fund firm Harbinger Capital Partners oversees roughly $7 billion.
"HGI is vastly overpaying for the acquisition of assets from its majority and controlling shareholder," according to the suit, which was filed by Harbinger Group investor Alan Kahn in Delaware Chancery Court on Tuesday. Kahn sued Falcone, other directors and Harbinger Group itself. Source