Wednesday, 4 March 2015
Last updated 0 sec ago
Oct 7 2011 | 11:52am ET
Harbinger Capital Management's ambitious wireless venture said it is considering a document request from a Sen. Charles Grassley (R-Iowa), who is seeking information about the firm's ties to the White House.
LightSquared said it has "Sen. Grassley's request under review." The ranking Republican on the Senate Judiciary Committee has asked for records of Harbinger's communications with White House officials about LightSquared, which won a crucial waiver from the Federal Communications Commission earlier this year.
Grassley and other Republicans have suggested that the waiver was granted because of Harbinger founder Philip Falcone's donations to Democrats. Falcone and LightSquared have denied those allegations, the latter noting that the original approvals for LightSquared came during the George W. Bush administration and the former claiming to be a registered Republican.
Grassley's request may not be the only one Falcone has to deal with from Capitol Hill. Members of the Senate Agricultural Committee may call him to testify about Harbinger's investment in LightSquared.
LightSquared, for its part, continued to move forward with business as usual. On Wednesday, CEO Sanjiv Ahuja told Dow Jones Newswires that the company would need to raise $3.5 billion to be cash-flow positive over the next two years, although the company is not actively raising money.
"We are absolutely confident we can raise the capital that's needed," Ahuja said. He said the company was equally confident that it could deal with the global position system interference issues that have plagued the company.
"We are absolutely confident that we can design a network that can live harmoniously with the GPS network and the GPS devices that are out there," he said.
Jan 23 2015 | 1:00pm ET
In our new section, FINtech Focus, we will profile one of these firms each week. While fintech is a broad category, we will be focusing on firms that specifically cater to the alternative investment industry. Read more…