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It's a big loud acquisitions mania, and no one knows how it will end


It’s a big loud acquisitions mania, and no one knows how it will end
SPACs are hot, but has this way of taking a company public created a risky game of musical chairs?
By Scott Kirsner Globe Correspondent,Updated April 11, 2021, 4:21 p.m.
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SPACS offer a shortcut to the stock market. But some experts worry that their rapid rise may not be sustainable.Michael Nagle/Photographer: Michael Nagle/Bloo
There are more than 400 companies running around with boxes of cash, looking to buy other businesses. Some, known as special purpose acquisition companies, or SPACs, are based in Massachusetts, and some of the companies they are considering buying are based here. ....

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Do-Nothing SPACs Sag, Offering Investors a $1.1 Billion Return


Apr 05 2021, 10:48 PM
April 05 2021, 4:44 PM
April 05 2021, 10:48 PM
(Bloomberg) What would you do if someone offered to let you buy dollars for 99 cents and walk away with a billion-dollar profit?
(Bloomberg) What would you do if someone offered to let you buy dollars for 99 cents and walk away with a billion-dollar profit?
That’s the opportunity, at least in theory, presented by underwater SPACs. Some 300 special purpose acquisition companies debuted in the first quarter of this year, creating an oversupply with at least 302 that hadn’t bought anything yet and were trading for less than the cash raised in their public offering. They’re also facing an eventual deadline to liquidate if they don’t come up with a deal. ....

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