Ackman stays mum on SPAC target but says a second SPAC may follow

BOSTON (Reuters) – Billionaire investor William Ackman told clients on Monday that he has nothing to say about an acquisition target for his first blank check company but that he will likely launch a second special purpose acquisition company as soon as he can.

Ackman made headlines last year when he raised $4 billion at Pershing Square Tontine Holdings’ initial public offering, making it the biggest blank check company ever. It now has between $5 billion and $7 billion of equity capital for its initial business combination.

Speculation grew about Ackman’s potential target – with talk about Airbnb and Bloomberg L.P. being on his list. Late last year, he said he hoped to be able to break the news on a target by the end of the first quarter of 2021.

On Monday, Ackman said in a report that he had nothing to convey. “We do not intend to make any announcements about PSTH’s transaction progress until we enter into a definitive agreement,” he wrote.

But Ackman also said a second so-called SPAC may not be far off, noting “We are likely to launch a second SPAC, PSTH2 after PSTH completes a business combination transaction.”

Ackman also discussed environmental, social and governance – or ESG – issues, saying they are critical for his investments and play no role in trying to market to potential newcomers because he is not presently raising new capital.

“We have chosen to invest in companies which already have excellent ESG practices, including good governance, robust environmental stewardship programs, and diversity and inclusion initiatives,” Ackman said in the report. Most companies already exhibited those traits when he invested and “all, to varying

degrees, do so today,” he added.

Ackman also said that Tope Lawani, Rupert Morley and Tracy Palandjian have been nominated as directors, expanding the board to seven members, including six who are independent.

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