Newtown Massacre Prompts Sale of Bushmaster Rifle Maker
Cerebus Capital to sell interests in company in bid to keep California investors happy.
The company that produced the AR-15 type Bushmaster rifle used in the Newtown, Conn., school massacre is now up for sale. After coming under public scrutiny, Bushmaster Firearms International will immediately be sold by its private equity owner, Cerberus Capital Management LP.
This comes after California State Treasurer Bill Lockyer proposed that the state sell its interest in any company that is illegal under California’s assault weapons ban. California’s ban includes the Bushmaster rifle. There’s no doubt that the gunning down of 26 people, 20 of them children, at Sandy Hook Elementary School on Friday weighed heavily on his decision. Amid its bid to receive up to $3.5 billion from investors, particularly 400 million from the California Public Employees’ Retirement System, Cerebus said on Tuesday it would hire a financial advisor to sell all interests in the company. (Chicago Tribune)
[LET'S TALK! Join Loop 21 on Twitter Wednesday at 8 p.m. EST for a TweetUp about the terror at Newtown]