Cerberus Capital Management seems ready to turn to investment bank Lazard to sell its controversial gunmaker, Freedom Group.
The private equity giant on Monday decided to sell the company, following last week's tragic shooting at a Connecticut elementary school that took the lives of 20 children, as well as six adults and the shooter. It's now in talks with Lazard, with one possibility being an auction for Freedom Group, which Cerberus created in 2007 to combine several prominent names in the industry.
Cerberus could hire a second bank to help market Freedom Group alongside Lazard, or might pick another bank entirely, The Wall Street Journal reports. But Lazard has the inside track; it has worked closely with Cerberus and one of its bankers, Terry Savage, sits on Freedom Group's board.
New York-based Cerberus could pick a bank to sell the company within a few days, according to the Journal.
Cerberus said on Tuesday it would sell Freedom Group to avoid "being drawn into the national debate on gun control." But that debate could still impact the company: With President Barack Obama this week vowing to send new gun-control legislation to Congress next year, it could take months to auction Freedom Group, with potential buyers awaiting an outcome on the policy front.