Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Blank Check IPOs (SPACS) -- Ignore unavailable to you. Want to Upgrade?

To: Joe S Pack who wrote (1724)	4/10/2008 5:31:21 PM
From: Glenn Petersen	Respond to of 3862

Joe, There is no question that the hedge funds have benefited from the liquidation of SPACs, and that in several instances they may have killed deals that would have normally been approved, though I would suggest that most of the failed transactions were not approved because of perceived deficiencies in the targeted companies. A bad deal is still a bad deal. Just look at some of the SPACs that have seen their shares implode after their transactions were approved. To date, none of the SPAC common shares have been driven down to ridiculously low levels by short sellers. While all of the SPACs without deals are selling at discounts to their liquidation values, the discounts are appropriate given the time value of money. Generally, the more recent the IPO the greater the discount. Because Liberty Lane Acquisition is the first blank check offering from Goldman Sachs, I am confident that they will do everything in their power to make sure that it succeeds. I think that future SPAC offerings will feature a reduction in the percentage of shares that are allocated to the management groups. When GHL Acquisition filed its initial registration statement, the company had allocated 20% of its post-IPO shares to the management group. By the time it went public on February 19, that percentage had been reduced to 17.5%. Liberty Lane filed its initial S-1 on March 25, 2008. I would not expect them to complete their IPO until June at the earliest. Regards, Glenn