IPO VIEW-"Blank-check" IPOs: Under the radar, but lucrative

By Lilla Zuill

NEW YORK, Oct 5 (Reuters) - One of Europe's biggest hedge funds is about to gain a New York Stock Exchange listing -- in a most unconventional way.

GLG Partners, which has more than $21 billion in assets under management, will bypass the conventional initial public offering route, choosing instead to go public through a reverse merger with a "blank-check" company.

The GLG transaction highlights the growing stature of so-called blank-check companies, which sell shares to the public for the sole purpose of funding acquisitions.

Blank-check IPOs have been quietly booming -- and their growth has been helping some well-heeled investment managers, such as GLG's, sell shares to the public while bypassing some of the scrutiny that can accompany higher-profile IPOs.

GLG is run by former Lehman Brothers and Goldman Sachs executives and counts Dubai's Istithmar -- owner of luxury liner Queen Elizabeth 2 and tony Manhattan retailer Barneys -- and European private bank Sal. Oppenheimer as shareholders.

A heavy-hitter in Europe, GLG is little known in the United States -- but under its deal with Freedom Acquisition Holdings FRH.A, it is poised for a New York Stock Exchange listing.

The lack of fanfare means it is unlikely to be among 2007's hottest offerings, even if its expected market capitalization ranks it alongside some of the year's biggest U.S. flotations.

By its own estimate of nearly $3.5 billion, GLG's market value would be in the same league as MF Global Ltd (MF.N: Quote, Profile, Research, Stock Buzz), a U.S. brokerage spun off by London-hedge fund Man Group Plc (EMG.L: Quote, Profile, Research, Stock Buzz) this year, and about half the value of Blackstone Group (BX.N: Quote, Profile, Research, Stock Buzz), one of the most hyped, and volatile, IPOs of the year.