What do Ron Perelman, Dan Quayle, Steve Wozniack, Nelson Peltz and Thomas Hicks have in common? No, not their support for the Republican Party (for which the authors make no comment). They have each lent their support and name to Spacs or special purpose acquisition companies.
Spacs are blank-cheque (or blank-check as the Americans, the architects behind the first Spacs, would say) companies that are publicly listed with no assets except cash to make a deal. In the past few months we have seen a flurry of editorials and write-ups in the broadsheets about Spacs. Why? Warren Buffet went live this year on Spacs, making it clear that he was interested in this market segment. And what Buffet says is likely to move markets. However, on closer examination, have there been any structural or other developments to this asset class?
The cynic could say that the excitement about Spacs in...