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The War Profiteers - War Crimes,
Kidnappings, Torture and Big Money |
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April 30th,
2008 - Exclusive: Hedge Fund in Talks to Buy Blackwater |
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Exclusive: Hedge Fund in
Talks to Buy Blackwater Private Equity Firm Could Invest At Least $ 200 Million Into
Controversial Security Firm By Maddy Sauer ABC News April 30, 2008 The hedge fund giant that
owns a controlling stake in Chrysler is in negotiations to buy the
controversial security firm Blackwater USA, which has millions of dollars in
U.S. government contracts in Iraq, according to sources familiar with the
talks. Cerberus Capital Management
could invest $200 million for a stake in Blackwater, said a source close to
the negotiations. Other sources said auditors from Cerberus had been
examining Blackwater's books since the beginning of the year. A source close to the
negotiations says there is no deal yet, but there might be one in the future
and that negotiations about a possible investment into Blackwater are
ongoing. A Cerberus spokesman said
the company doesn't comment on market rumors or speculation. Blackwater did
not immediately respond to a request for comment. The reclusive founder of
Cerberus, Stephen Feinberg, reportedly told his investors in a letter earlier
this year that he hated all the attention the company was getting. "We do our best to
avoid the spotlight," wrote Feinberg, "but unfortunately, when you
do some large deals, such as Chrysler and GMAC, it is hard to avoid." Owning control of Blackwater
would certainly attract even more attention to Cerberus. Blackwater has been
accused of tax fraud, improper use of force, arms trafficking and overbilling
connected to its work for the U.S. government in Iraq. A grand jury, federal
prosecutors and congressional investigators are all currently probing
allegations against the company. Despite the controversy,
however, Blackwater was recently renewed for a $1.2 billion private security
contract with the State Department. The one-year extension is worth an
estimated $240 million. The chairman of Cerberus is
former Treasury Secretary John Snow, and former Vice President Dan Quayle is
also a prominent figure in the company. Cerberus holds controlling or
significant minority interests in companies around the world that in
aggregate currently generate more than $60 billion in annual revenues,
according to their Web site. Copyright © 2008 ABC News
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