Monday, February 18, 2008
SPACs (Special Purpose Acquisition Companies, f/k/a blank check companies) are hot, even though, as former SEC Chair Arthur Levitt puts it, they are "the ultimate in terms of lack of transparency." Since 2003, SPACs have raised about $20 billion in IPOs. They generally have 18-24 months to find an acquisition (which must be approved by shareholders) or return investors' money. The Washington Post highlights one that has raised $215 million from investors like Jack Kemp, Mario Cuomo and Hank Aaron to buy sports teams and stadiums. WPost, The New Way To Make Deals: Blank Checks.