PSTH Stock: The SPAC Merger News That Has Pershing Square Falling Today

Bill Ackman’s Pershing Square Tontine Holdings (NYSE:PSTH) has made some angry investors this morning with news from its annual report. As a result, PSTH stock is seeing a dip today.

A photo of wooden blocks that say SPAC on a folded newspaper.

Source: Dmitry Demidovich/ShutterStock.com

The special purpose acquisition company (SPAC) Pershing Square Tontine is a large acquisition company with legendary investor Bill Ackman at the helm. The company shows great promise with investors, many of whom find their confidence in Ackman’s proven track record.

Ackman has been seeking out the perfect mature startup to bring public. However, in the company’s annual report on Monday, investors are disappointed to find that they won’t know what company that will be during Q1.

Ackman writes in the report that he has no intention to make any transaction progress public, “until we enter into a definitive agreement.”

Investors were expecting an announcement in Q1, and speculation is hot around potential targets for the SPAC. Names of companies like Reddit, Scale AI and Wawa are floating around. And honestly, they all seem like good bets, considering Ackman’s expertise across many industries. Without a hint of a deal, or a clue as to the sector the deal might take place in, it’s hard not to sympathize with shareholders.

The news has disenchanted some of the company’s investors. Today, PSTH stock is down by about 2.5%.

Ackman’s Report Shows Upside for PSTH Stock

Not all of the news from Ackman’s report was bad. The good news was that Ackman plans on supplementing PSTH stock with a second option for investors. Pershing Square Tontine Holdings II will be a clone of PSTH, meant to bring a second company public after the finalization of the first PSTH deal.

Supplementing this news was a plan from Ackman for giving owners of PSTH stock preference in buying PSTH2 options. The PSTH2 IPO won’t happen until after the first deal’s finalization, which is still a mystery. Still, it’s a nice consolation for PSTH shareholders who are getting impatient.

On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article.


Article printed from InvestorPlace Media, https://investorplace.com/2021/03/psth-stock-the-spac-merger-news-that-has-pershing-square-falling-today/.

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