Ackman / PSTH Deal Falls Apart, and Merger Monday is Back

UMG Deal will proceed via Pershing Square Holdings, and PSTH will pursue conventional SPAC transaction. 10 SPACs set to vote on their mergers this week.

Author:
David Drapkin
Publish date:
Jul 19, 2021 7:57 AM EDT

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Last month Bill Ackman's Pershing Square Tontine Holdings (PSTH) announced one of the most complicated SPAC deals that the market had ever seen in structuring a deal to take Universal Music Group public. Not to rehash the details, but that transaction would have created a new kind of acquisition company, the Special Acquisition Rights Company (SPARC).

However, in a stunning letter to shareholders this morning, Ackman has said that due to complications with the SEC and the negative reaction in PSTH's share price that the deal is off the table and the UMG transaction will proceed with Pershing Square Holdings instead.

PSTH shares have lagged since the UMG transaction announced

PSTH is still the largest SPAC out there at some $4B in trust, and will now have 18 months to pursue a traditional SPAC business combination.

Merger Monday is Back

4 new SPAC merger deals announced this morning to kick off the week, highlighted by Ermengildo Zegna going public via Investindustrial Acquisition Corp (IIAC), valuing the legendary fashion retailer at a $3.2B EV.

Other SPAC deals came from ECP Environmental Growth Opportunities (ENNV), Capstar (CPSR), and Omnichannel Acquisition (OCA).

10 SPACs Set to Vote on Mergers this Week

Jul 19 | $ 9.45 | ANDA - Andina Acquisition Corp. III --> Stryve Foods, LLC
Jul 20 | $ 9.13 | ACND - Ascendant Digital Acquisition Corp --> Beacon Street Group
Jul 20 | $ 9.31 | TWND - Tailwind Acquisition Corp --> QOMPLX, Inc.
Jul 20 | $ 13.26 | PSAC - Property Solutions Acquisition Corp --> Faraday Future
Jul 20 | $ 13.44 | GHVI - Gores Holdings VI Inc --> Matterport, Inc.
Jul 20 | $ 9.00 | RAAC - Revolution Acceleration Acquisition Corp --> Berkshire Grey
Jul 21 | $ 11.17 | THCB - Tuscan Holdings Corp. --> Microvast, Inc.
Jul 21 | $ 9.71 | VCVC - 10X Capital Venture Acquisition Corp --> REE Automotive Ltd.
Jul 21 | $ 11.39 | CMLF - CM Life Sciences Inc --> Sema4
Jul 22 | $ 22.79 | CCIV - Churchill Capital Corp IV --> Lucid Motors

Friday's SPAC Movers

Biggest Gainers

27.18% ~ $ 10.20 | GXGX - GX Acquisition Corp (Announced)
7.90% ~ $ 11.20 | FGNA - FG New America Acquisition Corp (Announced)
6.94% ~ $ 13.26 | PSAC - Property Solutions Acquisition Corp (Announced)
3.85% ~ $ 10.80 | VACQ - Vector Acquisition Corp (Announced)
3.35% ~ $ 10.18 | IIAC - Investindustrial Acquisition Corp. (Pre-Deal)
1.99% ~ $ 11.55 | TDAC - Trident Acquisitions Corp (Announced)
1.92% ~ $ 9.55 | NHIC - NewHold Investment Corporation (Announced)
1.75% ~ $ 9.91 | PFDR - Pathfinder Acquisition Corporation (Announced)
1.64% ~ $ 9.91 | HIII - Hudson Executive Investment Corp. III (Pre-Deal)
1.56% ~ $ 9.45 | ANDA - Andina Acquisition Corp. III (Announced)
1.52% ~ $ 10.71 | PDAC - Peridot Acquisition Corp (Announced)
1.45% ~ $ 9.81 | DHBC - DHB Capital Corp. (Pre-Deal)
1.13% ~ $ 9.86 | ATMR - Altimar Acquisition Corp. II (Announced)
1.06% ~ $ 10.49 | SRAC - Stable Road Acquisition Corp. (Announced)
1.06% ~ $ 10.51 | CND - Concord Acquisition Corp (Announced)
.91% ~ $ 9.95 | GTPB - GORES TECHNOLOGY PARTNERS II, INC. (Pre-Deal)
.91% ~ $ 10.03 | DKDCA - Data Knights Acquisition Corp. (Pre-Deal)
.88% ~ $ 10.34 | ACKIT - ACKRELL SPAC Partners I Co. (Pre-Deal)
.82% ~ $ 9.86 | RAM - Aries I Acquisition Corp (Pre-Deal)
.73% ~ $ 9.70 | CLAS - Class Acceleration Corp. (Pre-Deal)

Biggest Losers

-5.42% ~ $ 11.17 | THCB - Tuscan Holdings Corp. (Announced)
-4.06% ~ $ 9.69 | CPAR - Catalyst Partners Acquisition Corp. (Pre-Deal)
-3.02% ~ $ 9.31 | TWND - Tailwind Acquisition Corp (Announced)
-2.90% ~ $ 10.70 | MUDS - Mudrick Capital Acquisition Corporation II (Announced)
-2.75% ~ $ 12.36 | FST - FAST ACQ CP (Announced)
-2.71% ~ $ 9.71 | VCVC - 10X Capital Venture Acquisition Corp (Announced)
-2.45% ~ $ 10.73 | AGC - ALTIMETER GROWTH CORP (Announced)
-2.27% ~ $ 12.03 | TPGY - TPG Pace Beneficial Finance Corp (Announced)
-2.24% ~ $ 10.02 | LSAQ - LIFE SCI ACQ II (Announced)
-1.90% ~ $ 17.04 | RICE - Rice Acquisition Corp. (Announced)
-1.83% ~ $ 9.13 | ACND - Ascendant Digital Acquisition Corp (Announced)
-1.81% ~ $ 20.63 | PSTH - Pershing Square Tontine Holdings (Announced)
-1.69% ~ $ 10.47 | FTCV - FinTech Acquisition Corp. V (Announced)
-1.61% ~ $ 9.79 | RXRA - RXR Acquisition Corp (Pre-Deal)
-1.57% ~ $ 10.02 | ZT - Zimmer Energy Transition Acquisition Corp. (Pre-Deal)
-1.33% ~ $ 10.36 | GSAH - GS Acquisition Holdings Corp II (Announced)
-1.32% ~ $ 9.76 | IACC - ION Acquisition Corp 3 Ltd. (Pre-Deal)
-1.27% ~ $ 9.70 | IPVI - InterPrivate IV InfraTech Partners Inc. (Pre-Deal)