Cerberus to sell maker of school massacre weapon

Posted at 12/18/12 11:47 PM

NEW YORK - Private capital group Cerberus Capital Management announced Tuesday it would sell its shareholding in the company that makes the assault rifle used in last week's US school massacre.

Amid a surge in calls for tough gun control legislation after the Connecticut murder of 20 elementary school children and seven adults, Cerberus said it would sell its controlling interest in Freedom Group, which manufactures the Bushmaster AR-15 assault rifle used in the horrific killings.

Cerberus said it was "immediately" starting the formal process to sell its shares in Freedom Group shares, which it purchased in 2006 as a financial investment.

In a statement, the company tied its decision to Friday's attack at the Sandy Hook Elementary School in Newtown, Connecticut by a heavily armed 20-year-old man whose motives are still not publicly known.

"It is apparent that the Sandy Hook tragedy was a watershed event that has raised the national debate on gun control to an unprecedented level... As a firm, we are investors, not statesmen or policy makers. Our role is to make investments on behalf of our clients," the company said.

"There are, however, actions that we as a firm can take. Accordingly, we have determined to immediately engage in a formal process to sell our investment in Freedom Group."

Cerberus said the decision would allow it to meet its obligations to its investors "without being drawn into the national debate" on gun control.

Cerberus sought to distance itself and Freedom Group from both the tragedy and the firearms debate.

"Freedom Group does not sell weapons or ammunition directly to consumers, through gun shows or otherwise. Sales are made only to federally licensed firearms dealers and distributors in accordance with applicable laws and regulations.

"We do not believe that Freedom Group or any single company or individual can prevent senseless violence or the illegal use or procurement of firearms and ammunition.

Most gun manufacturers in the United States are privately owned.

North Carolina-based Freedom Group manufactures a number of brands popular with the military, police, hunters and the public, including Bushmaster, Remington, Marlin, Dakota Arms, Para pistols, and DPMS Panther.

The company has not commented on the Sandy Hook shootings or the rising gun control debate.