SAC Capital Advisors had been in talks to sell its reinsurance business, said four sources familiar with the discussions last Thursday. The sale was after the USD14 billion hedge fund faced long running insider trading scrutiny, added sources.
According to one source familiar with the company, numerous interested parties had expressed their interest in the reinsurance company. However, the board of SAC Capital, led by billionaire Steve A. Cohen, had been considering various options including shutting the business down, said source. The four sources that had knowledge regarding SAC Re's potential sale spoke in condition of anonymity as the matter was held private in nature.
The Bermuda-based reinsurance business of SAC Capital was launched only last year. The sale of the reinsurer would help Cohen continue on the path of converting the hedge fund into a family office, said a Reuters report. This was after the government had filed criminal insider trading charges against the hedge fund last July.
A representative for SAC Capital refused to comment on the reported possible sale of its reinsurance.
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