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Last updated: March 20. 2013 2:39PM - 386 Views
Associated Press



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(AP) Just days before 20 children and six educators were killed at a Connecticut school in December, state development officials offered the maker of the rifle used in the massacre a $1 million loan to bring new jobs to the state.


The offer, capping six months of negotiations between the Department of Economic and Community Development and Freedom Group, was dropped after private equity firm Cerberus Capital Management announced it would sell Freedom Group, manufacturer of the Bushmaster AR-15.


The deal was ended four days after the killings, according to a letter released in response to an open records request.


The Hartford Courant first reported the deal and its unraveling.


Deputy agency commissioner Ronald Angelo said Wednesday that Cerberus' announcement made the deal untenable. The announced sale led to several "cordial, amicable" phone conversations between the state and the company about the deal no longer being workable.


He said the killings also were a factor.


"It would be naive to think that that would not weigh on people's minds," he said, referring to the shooting deaths.


Freedom Group did not immediately respond to an email seeking comment.


In a Dec. 6 letter eight days before the shootings at Sandy Hook Elementary School the administration of Gov. Dannel P. Malloy offered a $1 million loan at 2 percent interest for 10 years to encourage Freedom Group to move its corporate headquarters to Stamford from North Carolina. The state would forgive $550,000 in exchange for the creation of 25 jobs.


Twelve days later and four days after the massacre the agency informed Freedom Group that the offer was withdrawn. Angelo said


Angelo said in an interview that Freedom Group approached state officials in June 2012 with a proposal to move the company's headquarters. The announcement by Cerberus that it would sell Freedom Group was "an adverse financial condition," he said.


Days after the killings, investors started to avoid some of the nation's largest gun makers. Cerberus Capital Management announced it would sell the maker of the rifle used in the massacre, which it called a "watershed event."


"We are investors, not statesmen or policy makers," Cerberus said at the time.


Stocks of other gun companies fell, and one sporting-goods chain said it would temporarily stop sales of military-style firearms.


Associated Press
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