Cerberus Capital Management LP’s pursuit of grocery chain Supervalu Inc. has stalled because the private-equity firm has had trouble obtaining the funds for a leveraged buyout, said people familiar with the matter.
Cerberus Capital Management LP, the New York-based investment firm that owns the largest U.S. gunmaker, will put the company up for sale, acting four days after one of its rifles was used in the Connecticut school shootings that left 26 people dead, including 20 six- and seven- year-olds.
Democratic governors and lawmakers in at least 10 U.S. states are seeking new restrictions on guns and ammunition after last month’s school shooting in Connecticut, challenging the firearms lobby’s political clout.
Cerberus Capital Management LP struggled to find investment banks to help sell Freedom Group Inc., the gun company whose rifle was used in the shooting spree in Newtown, Connecticut, said people with knowledge of the matter.
Brazilian gunmaker Forjas Taurus SA is emerging as a likely bidder for Freedom Group Inc. as analysts bet that proposed U.S. gun controls will fail to deter demand in the world’s largest consumer firearms market.
An investor group led by Cerberus Capital Management LP is nearing a deal to acquire some of grocery chain Supervalu Inc.’s assets and become a shareholder in the remaining public company, said three people familiar with the matter.