TK News by Matt Taibbi
TK Finance Dictionary: SPAC
America still leads the world in one thing: inflating speculative bubbles using gibberish finance acronyms. Meet the latest Get-Super-Rich-Quick scheme, the Special Purpose Acquisition Company
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Welcome to a new feature at TK, done in conjunction with old friend Eric Salzman of the Monkey Business podcast, a finance professional I worked with after the crash. We’re building a video glossary of finance terms. The concept is half Cliff’s Notes, half Devil’s Dictionary a usable guide that also takes a swipe at the often intentionally obtuse jargon of high finance.
Dell Technologies Chairman and CEO Michael Dell is seeking to raise upward of US$575 million for his newly formed “blank check” acquisition company through an initial public offering.
“MSD Acquisition Corp. is a newly organized blank check company incorporated as a Cayman Islands exempted company for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses or entities,” said the company in a filing with the U.S. Securities and Exchange Commission. “Our acquisition and value creation strategy is to identify, acquire and after our initial business combination serve as a trusted, long-term partner to accelerate a company’s growth in the public markets.”
(Bloomberg) Hong Kong billionaire Richard Li is considering setting up a third special purpose acquisition company in the U.S., according to people with knowledge of the matter.Li and tech mogul Peter Thiel have raised about $900 million via two U.S.-listed SPACs under the Bridgetown brand. Thiel will not be involved in the third deal, the people said, asking not to be identified because the information is private. The new SPAC could raise a few hundred million dollars, one of the people said.Considerations are at an early stage and there’s no final decision on the size of the deal, the people said. A representative for Li declined to comment.A SPAC or blank-check company is a shell company that raises money from public investors with the goal of acquiring a business within two years. These deals have raised more than $48 billion in the U.S. alone just this year, according to data compiled by Bloomberg.Read more: SPACs See Asia as Next Hunting Ground for Takeover TargetsBridge
Canada’s SPAC market may see a resurgence with the sudden rise of blank check companies in the United States. However, if you want a robust business outlook, Real Matters stock is an attractive investment option.
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