UPDATE 1-Harbinger says Salton a buyer, not a seller

(Adds detail from a Salton news release)

* Harbinger says Salton not for sale

* Firm plans to focus on refinancing company's debt

* Salton preparing balance sheet for new acquisitions

By Joseph A. Giannone and Svea Herbst-Bayliss

NEW YORK/BOSTON, June 17 (Reuters) - You can buy a George Forman Grill, but the company behind these and other household appliances is not for sale.

Hedge fund firm Harbinger Capital Partners on Wednesday denied speculation it is selling its home appliance business, Salton Inc. Rather the fund, led by famed investor Philip Falcone, intends to ready Salton's balance sheet for a new acquisition.

"Salton is not for sale," Harbinger spokesman Charles Zehren said, responding to a New York Post report that the company could fetch as much as $500 million.

Zehren did say Harbinger has been approached "by a number of different parties" about the company.

"We've determined the most appropriate action, considering the substantial improvement in operations, is that we should focus on refinancing the outstanding indebtedness and reduce interest expense, further increasing cash flow," Zehren added.

Harbinger, which manages about $6 billion and owns a 92 percent stake in Salton, made its statement amid mounting speculation it was considering selling the marketer of such household brands as Black & Decker, George Foreman, Farberware and Toastmaster appliances.

Salton acquired rival APN Holding Co, parent of Applica Inc, in December 2007.

Miramar, Florida-based Salton said, "now that the integration of Applica and Salton is complete, the combined company is exploring various strategies to optimize its capital structure and capitalize on organic and external growth opportunities."

Salton Chairman and Harbinger Director of Investments David Maura, said in a statement the company's free cash flow has surged to $40 million from $5 million since it bought the companies.

That cash flow, which could reach $100 million this year, will be used to pay down debt and refinance a balance sheet that has already reduced leverage to 1.5 times equity, Salton Chief Executive Terry Polistina said. (Editing by Matthew Lewis; editing by Andre Grenon)