Activist Hedge Fund Elliott Looks To Raise $1B SPAC: WSJ
Activist investor Elliott Management Corp is looking to jump aboard the blank check company bandwagon, the Wall Street Journal reported Sunday.
What Happened: The Paul Singer-founded company has held discussions with bankers to raise a billion dollars for the special purpose acquisition company, people familiar with the matter told the Journal.
There is no clarity on which industries Elliott might target for a merger — post the formation of the blank check company, as per the Journal.
Only a dozen SPACs have raised more than $1 billion, according to SPACInsider.
“The argument for the larger SPAC is that it’s easier to negotiate with a company if the money has already been raised,” said Kristi Marvin, the founder of SPACInsider, as per the Journal.
See also: How to Invest in SPACs How to Invest in SPACs
Why It Matters: Fellow activists looking for targets for their SPACs include William Ackman’s Pershing Square Capital Management LP and Jeffrey Smith’s Starboard Value LP.
Ackman’s Pershing Square Tontine Holdings Ltd (NYSE: PSTH) raised $4 billion in 2020 and emerged as the largest SPAC in the market.
SPAC IPO transactions amounted to $83.04 billion in 2020 and so far this year SPACs have raised $35.3 billion, according to SPACInsider data.
SoftBank Group Corp (OTC: SFTBY), a Japanese conglomerate targeted by Elliott, is also planning to launch two more SPACs and raised $550 million in total in their IPOs, according to Reuters.
See Also: Activist Investor Elliott Exits AT&T, Buys Uniti, Boosts Dell
Photo courtesy: World Economic Forum via Flickr
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