The SPAC Report - March 2008

Status Hard to Maintain, Can Pose Tax Problems

There are currently 20 to 25 SPACs in registration that are invisible to all but the lawyers and bankers involved in the offerings. These SPACs registering under the Securities and Exchange Commission's Foreign Private Issuer regulations are not required to publicly disclose information about themselves until their registration statements become effective. Nor do they have to file the 10-K's and 10-Q's required of domestic companies on U.S. markets. Full Story

Firms Like Minimal Investments, Light Leverage

To date, SPACs have largely been driven by individuals. Blank check IPO investors have included big-name businessmen like Tom Hicks, Ronald Perelman and Nelson Peltz, not to mention scores of execs from the top ranks of private equity, asset management and venture capital firms.

Now there’s a different – and less individual driven – group of participants looking to get into the SPAC game: corporations.

The SPAC market has become overly saturated in recent months and investors should expect to see a much slower pace of offerings as warrants continue to trade below market expectations. Full Story

• Big Hopes on Marathon Deal, But Warrants Trade Down
• Goldman Breaks into SPACs with New Structure
• China Growth Alliance Utilizes Unique Unit Structure
• Royal Bank of Canada to Acquire Ferris, Baker Watts
• Israeli SPAC Trading Poorly Ahead of Deal
• Phoenix India Seeking Shareholder Approval for Shell Merger
• Hedge Funds a Hot Target for SPACs
• Ladenburg Buying Punk Ziegel
• Bank of New York Mellon Provides Packaged Back-end Services
• Hirings & Firings

• SPAC Tracker
• SPAC IPOs in Registration