The Norman Transcript

Nation/World

December 19, 2012

Investors turn against gun makers

MINNEAPOLIS — Investors shunned some of the nation’s largest gun makers Tuesday, putting up for sale the manufacturer of the Bushmaster semiautomatic rifle used in the Connecticut school shooting and worrying that the attack could soon bring stricter gun laws.

Stocks of other gun companies fell, and one sporting-goods chain said it would temporarily stop sales of military-style firearms. In Washington, some former opponents of gun control signaled that they may change their position, potentially giving stricter gun laws their best chance of passage in years.

The most notable rejection of the gun industry came when the private-equity firm Cerberus Capital Management announced it would sell the maker of the rifle used in the massacre, which it called a “watershed event.”

The shooting “raised the national debate on gun control to an unprecedented level,” Cerberus said in a news release. “We are investors, not statesmen or policy makers.”

In an acknowledgment of the changing political climate, the National Rifle Association promised “to offer meaningful contributions to help make sure this never happens again.” It scheduled a Friday news conference.

Bushmaster, Remington and DPMS are among the brands made by Freedom Group Inc., the largest firearms maker in the U.S.

The Madison, N.C., company sold 1.1 million rifles and shotguns last year, along with 2 billion rounds of ammunition. Its customers include law enforcement and military agencies, as well as retailers who serve hunters and gun enthusiasts.

Cerberus, a large private-equity firm best known for investing in Chrysler and other troubled corporations, appeared to have been under pressure from two sources: investors and the threat of more gun control.

Officials at California’s huge teacher pension fund said they were reviewing a $600 million investment in Cerberus in light of the Connecticut shooting. Through its stake in Cerberus, the California State Teachers’ Retirement System owns a 2.4 percent stake in Freedom Group.

Pension fund spokesman Michael Sicilia confirmed the fund owns about $4 million in shares of Sturm Ruger & Co. and $1.7 million in Smith and Wesson.

For local news and more, subscribe to The Norman Transcript Smart Edition, or our print edition.

1
Text Only | Photo Reprints
Nation/World
  • Senate approves new VA secretary

    WASHINGTON — The Senate on Tuesday unanimously confirmed former Procter & Gamble CEO Robert McDonald as the new Veterans Affairs secretary, with a mission to overhaul an agency beleaguered by long veterans’ waits for health care and VA ...

    July 30, 2014

  • Senate passes highway bill, sends it to House

    WASHINGTON — The Senate on Tuesday voted to change the funding and timing of a House bill to keep federal highway funds flowing to states in an effort to force Congress to come to grips with chronic funding problems that have plagued ...

    July 30, 2014

  • Israel targets Hamas infrastructures in latest round of bombing

    GAZA CITY, Gaza Strip — Israel unleashed its heaviest bombardment in a 3-week-old war against Hamas on Tuesday, striking symbols of the militant group’s control in Gaza and firing tank shells that Palestinian officials said shut down the ...

    July 30, 2014

  • Be ready for ‘prolonged’ Gaza war, prime minister says

    GAZA CITY, Gaza Strip — Signaling an escalation of Israel’s Gaza operation, Prime Minister Benjamin Netanyahu told Israelis Monday to be ready for a “prolonged” war, and the military warned Palestinians in three large neighborhoods to ...

    July 29, 2014

  • Deal to improve health care costs $17B

    WASHINGTON — A bipartisan deal announced Monday would authorize about $17 billion to help veterans avoid long waits for health care, hire more doctors and nurses to treat veterans and make it easier to fire executives at the Department of ...

    July 29, 2014

  • FedEx charges raising online pharmacy issues

    SAN FRANCISCO — FedEx Corp., the latest company accused in a federal probe involving illegal online pharmacies, says it will fight the charges that it knowingly shipped drugs to people who lack valid prescriptions....

    July 27, 2014

  • EU, U.S. seek to curb Putin’s Ukraine course

    BRUSSELS — Months after Russia annexed Crimea and stepped up support for separatists in eastern Ukraine, Europe and the United States are still searching for a way to persuade Russian President Vladimir Putin to change course....

    July 27, 2014

  • Fighting intense near crash

    DONETSK, Ukraine — Ukrainian armed forces mounted a major onslaught against pro-Russian separatist fighters Sunday in an attempt to gain control over the area where a Malaysia Airlines plane was downed earlier this month....

    July 27, 2014

  • Gaza war rages despite truce pledges

    GAZA CITY, Gaza Strip — Israel and Hamas launched new attacks Sunday in the raging Gaza war, despite going back and forth over proposals for a temporary halt to nearly three weeks of fighting ahead of a major Muslim holiday....

    July 27, 2014

  • Hamas fires rockets on Israel, ending 12-hour lull

    BEIT HANOUN, Gaza Strip — Hamas said it fired five rockets at Israel late Saturday after rejecting Israel’s offer to extend a 12-hour humanitarian cease-fire by four hours, casting new doubt on international efforts to broker an end to 19 ...

    July 27, 2014