SPAC Shareholders Get Distracted
Also private markets, executive coaching and AMC GoFundMe.
Churchill Capital Corp. IV is a special purpose acquisition company, a pot of money worth about $10.00 for each share that it issued. Its stock closed yesterday at $22.90 per share, which is more than $10.00. This is because it has announced a plan to merge with Lucid Motors Inc., an electric-vehicle company, and Churchill shareholders are excited about this merger and think it is a good deal.1 If Churchill closes its deal with Lucid, Churchill shareholders will have Lucid stock that they think is worth $22.90. If it does not close its deal with Lucid, they’ll get their $10 back in cash. They would prefer the $22.90.2
They would prefer the $22.90, but they would not necessarily prefer it enough to do anything about it: