Saturday, October 16News That Matters

Tag: takeovers

How financing SPAC takeovers became Wall Street’s new favorite trade

Matteo Colombo | DigitalVision | Getty ImagesFor most investors these days, it's literally a "PIPE dream." PIPEs, or private investments in public equity, are mechanisms for companies to raise capital from a select group of investors outside the market. But as PIPEs are increasingly being deployed in conjunction with a surge in SPAC mergers, a larger group of fund managers are seeking access to this security, with limits on who and how many can invest. While SPACs, or special purpose acquisition companies, will tap the public markets to raise capital to fund a future takeover, PIPEs are allocated to a small group of investors. Managers of the funds participating in the PIPE will sign a non-disclosure agreement, with trading restrictions, and are brought over a proverbial "wall," ...
Ministers update powers to block foreign takeovers

Ministers update powers to block foreign takeovers

Ministers will gain fresh powers to block or unwind foreign takeovers which pose a potential risk to national security, according to proposals to be unveiled on Tuesday. Sky News has learnt that a White Paper to be published by Greg Clark, the Business Secretary, will extend the Government's existing oversight of mergers and takeovers to a broader range of industries.The new rules will mean that ministers have the power to 'call in' corporate deals, block them subject to bidders meeting certain conditions or even unwind transactions which have already taken place.Sources said the National Security Investment White Paper would close a loophole which meant that the Government could only intercept corporate takeovers across the economy where there was a competition-related con...