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On Mergers, Acquisitions and Liquidation Using Specified Purpose Acquisition Companies (SPACs)

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Author Info

  • Milan Lakicevic

    ()
    (College of Economics, Podgorica, Montenegro)

  • Yochanan Shachmurove

    ()
    (The City College of The City University of New York, Department of Economics)

  • Milos Vulanovic

    ()
    (Western New England University, College of Business)

Abstract

A Specified Purpose Acquisition Company (SPAC) is formed to purchase operating businesses within a priori determined time period. SPACs existed in U.S capital markets since the 1920s. Their corporate structure has recently become debated in the legal and financial literatures, especially their structural response to regulations by the Security and Exchange Commission (SEC) in the late 1990s. SPACs were traded on American Stock Exchange and Overt the Counter Bulletin Board. Since 2008, SPACs are listed on New York Stock Exchange and National Association of Securities Dealers Automated Quotations. This paper examines the determinants of the execution of mergers by SPACs.

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Bibliographic Info

Paper provided by Penn Institute for Economic Research, Department of Economics, University of Pennsylvania in its series PIER Working Paper Archive with number 13-013.

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Length: 38 pages
Date of creation: 01 Feb 2013
Date of revision:
Handle: RePEc:pen:papers:13-013

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Keywords: Specified Purpose Acquisition Companies (SPACs); Blank Checks; M&A; IPO; Unit IPO; Warrants; Reverse Mergers; Private Equity;

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Cited by:
  1. Shachmurove, Yochanan & Vulanovic, Milos, 2014. "SPACs with focus on China," MPRA Paper 53550, University Library of Munich, Germany.

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