NEW YORK (AP) -- Harbinger Group Inc.'s stock almost 16 percent in extended trading Wednesday after the holding company said major shareholders are selling up to 25 million shares of its stock.
The New York company, with subsidiaries that offer life insurance and branded consumer products, will not sell any shares itself or receive proceeds from the offering.
Harbinger Capital Partners Master Fund I Ltd., Harbinger Capital Partners Special Situations Fund L.P. and Global Opportunities Breakaway Ltd. are selling stock.
A preliminary prospectus filed with the Securities and Exchange Commission listed Harbinger Capital Partners Master Fund I as offering up to 18.5 million shares. It currently owns 95.9 million shares. The sale would reduce its stake in Harbinger Group to 41 percent from 51 percent.
Harbinger Capital Partners Special Situations Fund is listed as offering up to 4.1 million of its 21.5 million shares. Global Opportunities is offering up to 2.4 million shares of its 12.4 million shares.
The company has about 140 million shares outstanding.
Shares of the company closed down 3.6 percent, or 38 cents, at $10.22 and tumbled $1.62 to $8.60 in after-hours trading. The stock has more than doubled in the year to date.