NEW YORK, July 3 Stephen Feinberg has scrapped a
bid for the maker of the Bushmaster rifle, which his private
equity firm, Cerberus Capital Management LP, put up for a sale
after one of its guns was used in the Newtown, Connecticut
school shooting in December, a person familiar with the matter
said on Wednesday.
Cerberus CEO Feinberg was putting together a consortium to
make a stalking horse offer designed to spur competition for the
rifle maker, Freedom Group, Reuters reported in April.
Feinberg no longer sees the need to make an offer for the
gun company, the person said, because Freedom Group is in
dialogue with a number of industry players, as well as financial
investors, and he views the sale process as robust.
No deal has been agreed to and talks with the potential
buyers are ongoing, the person added.
Cerberus declined to comment, while Freedom Group did not
respond to a request for comment.