Ackman Plans to Return Proceeds From $4bn SPAC

Investment-fund billionaire William Ackman, who launched the largest-ever special-purpose acquisition company with an aim of landing a big target to take public, may now return its funds to shareholders in the face of a lawsuit questioning the vehicle’s legality.

Mr. Ackman disclosed plans to unwind the $4bn vehicle, Pershing Square Tontine Holdings, in a letter to its shareholders that was posted to his firm’s website.

PSTH has about 11 months remaining to enter into a letter of intent with a transaction counterparty for its initial business combination, and six additional months to close that transaction. This period may be extended by up to six months by a vote of PSTH shareholders. According to the letter, the investment firm finds it “unlikely that it can be resolved in the short term”.

Pershing Square Tontine Holdings is a blank check company formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with a private company. PSTH is sponsored by Pershing Square TH Sponsor, an affiliate of Pershing Square Capital Management, L.P., a registered investment advisor with approximately $14bn of assets under management.

Source: Business Wire

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