Harbinger Deal For Old Mutual Life Insurer Delayed

Dec 16 2010 | 1:12am ET

Money problems are holding up Harbinger Capital Management's $350 million deal for Old Mutual's U.S. life insurance unit.

The New York-based hedge fund, whose founder has found himself forced to borrow money on at least three separate occasions over the last 14 months, including once from Harbinger, needed more time to get financing, Old Mutual said. The Anglo-South African firm said the deal would close next quarter, rather than this one, and that the price has not changed.

Harbinger itself needed a $400 million loan this summer, backed by the hedge fund's assets. Falcone originally planned to have his new permanent-capital vehicle, Harbinger Group, buy the Old Mutual business, but changed those plans in October.

Harbinger and Old Mutual are also still in talks with state regulators in the U.S. to get the approvals necessary for the sale.

"We expect these discussions will take some weeks to conclude and, as a result, closing is now expected during the first quarter of 2011," Old Mutual said.

Harbinger struck its deal for the life insurance unit in August. The hedge fund has named Leland Launer, the former chief investment officer at MetLife, the company's chairman and CEO.


In Depth

Q&A: High Conviction, Low Correlation

Oct 30 2014 | 7:35am ET

Acadian Asset Management's numbers are big: over $70 billion in assets under management...

Lifestyle

Ex-Hedgie Steyer Gives $56M To Climate Action Super PAC

Oct 28 2014 | 9:23am ET

Retired Farallon Capital founder Tom Steyer has poured almost $56 million into his...

Guest Contributor

Hedge Funds Weather A Data Management Perfect Storm

Oct 22 2014 | 12:28pm ET

From a regulatory standpoint, nearly every development since the crisis has placed...

 

Videos

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

October 2014 Cover

The yield curve and stock market response

Traders form habits quickly. Understanding these and their effects can better equip us to decipher actual market moves.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.