Investors shunned some of the nation's largest gunmakers Tuesday in the aftermath of the Connecticut school shooting, including making plans to sell the company that manufactures the Bushmaster semi-automatic rifle used in the attack.
Stocks of other gun companies fell, and one sporting-goods chain said it would temporarily stop sales of military-style firearms.
The most notable rejection of the gun industry came when the private-equity firm Cerberus Capital Management announced it would sell the maker of the rifle used in the massacre, which it called a "watershed event."
The shooting "raised the national debate on gun control to an unprecedented level," Cerberus said in papers announcing the planned sale. "We are investors, not statesmen or policymakers."
Bushmaster, Remington and DPMS are among the brands made by Freedom Group Inc., the largest firearms maker in the United States.
The Madison, N.C., company sold 1.1 million rifles and shotguns last year, along with 2 billion rounds of ammunition. Its products are sold to law enforcement and military customers as well as retailers who serve hunters and gun enthusiasts.
Cerberus, a large private-equity firm best known for investing in Chrysler and other troubled corporations, appears to have been under pressure from two sources: investors and the threat of more gun control.
Officials at California's huge teacher pension fund said they were reviewing a $600 million investment in Cerberus in light of the Connecticut shooting. Through its stake in Cerberus, the California State Teachers' Retirement System owns a 2.4 percent stake in Freedom Group, according to the pension fund.