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Breaking News from CNBC's Kate Kelly: SAC Capital Extends Q2 Investor Redemption Deadline

WHEN: Today, Thursday, May 9th

WHERE: CNBC's "Street Signs"

Following is the unofficial transcript of breaking news from CNBC's Kate Kelly. All references must be sourced to CNBC.

KATE KELLY: MANDY, SAC CAPITAL HAS NOTIFIED IT'S INVESTORS THAT IT IS EXTENDING ITS SECOND QUARTER INVESTOR REDEMPTION DEADLINE, I.E. THE TIME BY WHICH INVESTORS MUST NOTIFY SAC IF THEY WANT TO PULL OUT THEIR INVESTMENT CAPITAL BY TWO WEEKS. SO INSTEAD OF MAY 16TH IT WILL BE JUNE 3RD IN THE CASE OF THE SECOND QUARTER. INVESTORS WHO PULLED THEIR MONEY BY JUNE 3RD CAN GET ALL OF THEIR MONEY INVESTED BACK BY THE END OF THE YEAR. SAC IS URGING INVESTORS TO TRY TO STICK WITH THEM EVEN FOR ONE MORE QUARTER WHILE THEY WAIT FOR CONTINUED CLARITY ON THEIR LEGAL SITUATION. THERE IS A CRUCIAL CASE AGAINST A FORMER SAC TRADER, MATHEW MARTOMA, AND THE STATUTE OF LIMITATIONS ON BRINGING ADDITIONAL CHARGES – FOR EXAMPLE, POTENTIALLY AGAINST STEVE COHEN, THE FIRM'S FOUNDER – RUNS OUT AT THE END OF JULY. SO IF INVESTORS STICK WITH SAC THROUGH AT LEAST AUGUST, WHICH IS THE THIRD QUARTER, THEN THEY WILL HAVE MORE CLARITY AND HOPEFULLY FOR SAC'S SAKE, NO CHARGES AGAINST STEVE COHEN. POTENTIALLY, MANDY AND BRIAN, A GREATER COMFORT LEVEL TO STAY WITH THEM GOING FORWARD. THAT IS THE THINKING.


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