Special Purpose Acquisition Companies (SPACs) News

Wall Street in Quandary Over New SPAC Equity Contracts After SEC Crackdown

Wall Street accountants and lawyers are trying to figure out new equity agreements to lure investors back to the blank-check company market after the U.S. regulator cracked down on the use of warrants, six industry executives told Reuters. They are …

‘Cat-Prone’ Startup Kin Insurance in Talks to Go Public With ‘Shark Tank’ Judge’s SPAC

Home-coverage startup Kin Insurance is in talks to go public via Omnichannel Acquisition Corp., a special purpose acquisition company led by recurring “Shark Tank” guest judge Matt Higgins, according to people with knowledge of the matter. The combined entity is …

Buffett Extols U.S. Economic Recovery, Laments SPACs, Shrugs Off Tax Hike

Warren Buffett said on Saturday that Berkshire Hathaway Inc. is being lifted by a U.S. economy faring far better than he predicted early in the coronavirus pandemic, though investor euphoria is making it hard to deploy cash. Speaking at Berkshire’s …

SEC Eyes Guidance on SPAC Projections, Clarity on Liability Shield

U.S. securities regulator is considering new guidance to rein in growth projections made by listed blank-check companies, and clarify when they qualify for certain legal protections, according to three people with knowledge of the discussions. The previously unreported measures being …

More Assertive SEC Smacks Down SPACs: Viewpoint

Investor Jeremy Grantham says special purpose acquisition companies, which raise money in an initial public offering and then find a promising company with which to merge, are a “license to rip investors off.” On an investing podcast in February, the …

Ex-Allianz CFO Wemmer Plans to Form SPAC to Target Insurance Deals

Dieter Wemmer, a veteran insurance executive who was chief financial officer at Allianz SE, is launching a blank-check company to target deals in the sector where he worked for more than three decades, people familiar with the matter said. Wemmer …

SEC Throws Another Wrench into Wall Street’s SPAC Machine

U.S. regulators are throwing another wrench into Wall Street’s SPAC machine by cracking down on how accounting rules apply to a key element of blank-check companies. The Securities and Exchange Commission is setting forth new guidance that warrants, which are …

SEC Warns SPACs Aren’t a Way to Avoid Securities Laws

The U.S. Securities and Exchange Commission has a fresh warning for the booming SPAC market: Blank-check companies aren’t an end-around to avoid disclosing key information to investors. In a Thursday statement, a top SEC official made clear that despite their …

SPAC Mania Anxiety Grows; Bankers, Regulators, Insurers Try to Keep Pace

Anxiety is growing that the wellspring of special-purpose acquisition companies, a 2020s echo of the dot-com mania of the 1990s, is bumping up against the limits of both Wall Street and Washington. The pipeline of SPACs rushing to market is …

Hong Kong Developing SPAC Framework – But Lack of D&O Insurance Could Be Issue

Hong Kong is expected to have its own blank check company listing framework ready in June for public feedback and targets allowing deals to start by the end of this year, according to people familiar with the matter. The city …