SPACs

Capital Calls: JPMorgan, FirstGroup, Break fees

18 May 2021

Concise insights on global finance: Jamie Dimon is shuffling his deputies; the UK bus-to-rail group’s sale of its U.S. businesses to EQT has hit an investor revolt; deals involving AT&T and Canadian National Railway highlight the fees due for walking away.

Guest view: SPAC investors face six key risks

13 May 2021

Inadequate due diligence, material misstatements, and conflicts are among the problems contributing to a blank check bubble. Long-term sustainability of SPACs relies on comprehensive risk management and guidelines with stronger safeguards, says Lisa Silverman of K2 Integrity.

Viewsroom: China’s baby bust, European SPAC boom

13 May 2021

China’s census data showed the population grew just 0.53% every year in the decade to 2020, with fertility rates dropping to Japanese levels. That’s bad news for growth. And European rainmakers like Claudio Costamagna and Ian Osborne offer market-friendlier blank-check deals.

Capital Calls: Amazon EU tax win, Scooter SPAC

21 Jan 2022

Concise views on global finance: Jeff Bezos’s e-commerce giant wins a victory over the European Union, but the battle has already moved on; Bird’s $2.3 billion price tag is relatively high but less pie-in-the-sky than some recent deals.

Ginkgo’s $17.5 bln SPAC deal presupposes success

11 May 2021

Producing bespoke cells for manufacturing has potential, ranging from greener plastics to lab-produced cannabis compounds. Moderna’s valuation shows the potential of investing in a singular platform. But there are plenty of duds, and Ginkgo’s deal bakes in no room for error.

Europe’s late SPAC boom turns kinder to investors

11 May 2021

Italian banker Claudio Costamagna and British investor Ian Osborne are listing blank-cheque companies on the Continent. Their offerings try to better link founder rewards to shareholder returns. With the market for SPACs looking crowded, fairer structures will be more common.

Capital Calls: Uber, Roblox

11 May 2021

Concise views on global finance: Free rides for Covid jabs won’t help the ride-hailing app’s labor battle with Washington; the online games platform’s year-on-year growth decelerated sharply in April.

SPAC mergers ask for forgiveness not permission

10 May 2021

Two new deals show worrying habits remain the norm. Smart-truck company Plus barely has revenue; crop-tech firm Benson Hill touts financial projections going out to 2027. The SEC says it’s examining SPACs, but until it acts the companies have no reason to do anything differently.

E-book: Art of the SPAC

6 May 2021

More than 300 blank-check companies listed already in 2021, and they have struck deals worth nearly $300 bln to buy some 130 targets. It’s a record by miles, but Breakingviews has been on the case for more than a decade. A new e-book tells the story so far, and how it might end.

Viewsroom: Detailing the artistry of the SPAC

6 May 2021

Though special purpose acquisition vehicles are nothing new, the recent boom in fundraising and dealmaking has provided fertile hunting grounds for Breakingviews columnists. Lauren Silva Laughlin and Richard Beales walk through their new compilation “The Art of the SPAC.”

The art of the SPAC: from sublime to ridiculous

6 May 2021

More than 300 blank-check companies listed already in 2021, and they have struck deals worth nearly $300 bln to buy some 130 targets. It’s a record by miles, but Breakingviews has been on the case for more than a decade. A new e-book tells the story so far, and how it might end.

Capital Calls: Apple, UK SPACs

30 Apr 2021

Concise views on global finance: Apple’s European antitrust problem may start a global trend; UK regulators scramble to join SPAC party.

Capital Calls: U.S. antitrust, Dyal-Owl Rock

21 Apr 2021

Concise views on global finance: Would-be U.S. trustbuster nominee Lina Khan suggests it’s not just tech companies to blame for Big Tech’s dominance; two U.S. investment firms’ planned merger and sale to a blank-check company has cleared a legal hurdle.

New SEC boss’s SPAC work is already partly done

20 Apr 2021

Days after being sworn in, Gary Gensler can claim a sharp slowdown in new blank-check company floats and in the pace of SPAC dealmaking. Both reflect public warnings from the U.S. watchdog’s staff in recent weeks. Now comes the hard part of separating good features from bad.

Chancellor: Regulators will kill the SPAC frenzy

20 Apr 2021

Like “Bubble Companies” of 1720 England, today’s blank-cheque vehicles are “carrying on an undertaking of great advantage, but nobody to know what it is.” That speculative era ended when authorities stepped in. The SPAC bubble may be more rational but will meet a similar fate.

Grab’s $40 bln debut comes with twin airbags

13 Apr 2021

The Southeast Asian taxi-to-fintech firm is going public at a sales multiple twice Uber’s. U.S. SPAC sponsor Altimeter is contributing to a $4 bln PIPE and signing a long lockup. It’s a smart way to underwrite an amped-up valuation and sets a template to speed others to market.

SEC’s SPAC threats need more firepower

9 Apr 2021

The U.S. watchdog is zeroing in on the projections that targets of blank check companies use in deals. That focus is a start. But more and clearer disclosures on deal structure, price, and management goodies are needed too. Then the agency has guardrails to punish rule breakers.

SPACs can reverse listings decline with SEC’s help

7 Apr 2021

Blank-check vehicles are flawed, but they bring new businesses to public markets. If the hot first-quarter pace keeps up, SPACs could double the number of firms traded on U.S. exchanges in maybe four years. Even if activity slows, it’s a reason watchdogs may treat them gently.

Robo-suit SPAC paints dystopian financial future

6 Apr 2021

Former First Boston banker Brian Finn is using other people’s money to buy Sarcos, a robot maker in which he’s already an investor. The conflict-laden deal was negotiated in mere weeks. If Sarcos’ bionic product succeeds it will be a deal to remember. Doubly so if it fails.

Capital Calls: Bling deal

6 Apr 2021

Concise views on global finance in the Covid-19 era: Signet, the owner of jewelers Zales and Kay, is buying rental firm Rocksbox.