Bill Ackman’s hedge fund is about to go big-game hunting in the booming world of special-purpose acquisition companies, or SPACs. On 22 June, Pershing Square filed with the Securities and Exchange Commission to raise the largest-ever SPAC, with unconventional terms that the fund believes will give it an advantage when doing a deal.
The initial public offering seeks to raise $3bn for Pershing Square Tontine Holdings, a so-called “blank-cheque company” that will identify an acquisition target and buy it within 24 months, or else return the money to shareholders. It will trade on the New York Stock Exchange under the tickers PSTH for its shares and PSTH.WS for its warrants.