Bloomberg – Philip Falcone, the hedge-fund manager under fire from clients for tying up their cash in a wireless network and other hard-to-sell assets, plans to help finance such bets in the future by selling stock and bonds through a publicly traded shell company.
Harbinger Group Inc., a onetime oil driller that Falcone’s hedge funds took over last year, raised $350 million this week by selling five-year debt at a yield to maturity of 11 percent. Falcone plans to use the company’s cash and ability to issue stock to buy controlling stakes in industries from agriculture to telecommunications, according to a filing this month.
