Bloomberg Law
Aug. 26, 2021, 10:00 AM

Ackman’s SPAC Twist Faces Slow Going With Risk-Wary Regulators

Lydia Beyoud
Lydia Beyoud
Corporate Governance Reporter
Andrew Ramonas
Andrew Ramonas
Corporate Disclosure Reporter
Siri Bulusu
Siri Bulusu

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. ...

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