has arrived at a settlement with two early investors in what would eventually become his money management empire.
On Friday, the New York Times
reported Gabelli has agreed to pay more than $100 million to Frederick Mancheski
, who invested $50,000 in start-up money for Gabelli Group Capital Partners
in 1977, and David Perlmutter
, who once served as a lawyer for Gabelli, more than $100 million. The two had charged Gabelli refused to redeem their shares in GGCP -- the parent company of GAMCO Investors Inc.
-- at fair market value.
According to Reuters
, Gabelli has said both parties in the suit are prevented from naming figures, and he has not done so.
reported that Mancheski will receive shares in GAMCO corresponding to his stake in GGCP, which a GGCP director last year estimated to be worth $30 million. However, the Times
reported the men's GGCP holdings translate to 2.1 million shares of GAMCO, worth about $80 million, as well as cash compensation of over $20 million.
"We're pleased with the outcome of this matter, which resolves the issue in a way that allows us to move forward and directly aligns Mr. Mancheski's and Mr. Perlmutter's interests with those of Gamco," Gabelli said in a statement.
Mancheski, meanwhile, said: "I'm also very pleased to have reached this agreement. I hope to see further growth in the value of Gamco Investors as I become a major shareholder directly in Gamco Investors."
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