Billionaire Bill Ackman’s pitch to create a new class of special purpose acquisition companies faces hurdles in trying to woo the skeptical SEC.
Ackman recently told investors in his $4 billion SPAC, Pershing Square Tontine Holdings Ltd., that he’d return their money if the Securities and Exchange Commission approves a new vehicle he’s dubbed a “SPARC” or special purpose acquisition rights company.
Ackman’s proposal turns the traditional SPAC model on its head. In a SPAC, a sponsor gathers a pot of money through an initial public offering of a shell company with the promise to acquire a successful private company. ...