Hedge Fund Prepping to Buy Blackwater?

Perhaps you still have doubts about whether private military contracting is really a viable, long-term, big business. The hedge fund that owns a controlling stake in Chrysler, apparently, does not -- if this ABC News report is accurate. Cerberus Capital Management "in negotiations to buy the controversial security firm Blackwater USA," according to the network.

*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. *

Maybe Feinberg and his team will take the opportunity to do an image makeover of the mercenary outfit, if he buys it. If so, we've got a suggestion or two for him.

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