Conflicting Interests Put SPAC Mergers In Limbo

Law360, New York (September 15, 2009, 1:54 PM EDT) -- Despite a slight warming trend in the merger market, struggles continue for special purpose acquisition companies, public companies formed to buy businesses: As an aftereffect of the recession, many SPAC investors would rather get money back than see a deal get done, requiring deft handling of potential acquisitions, according to attorneys.

Billed as a low-risk means for investors to put up funds for an acquisition, SPACs are shells that raise money through initial public offerings and have a specified time limit for completing deals, and if...
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