NEW YORK, March 30 (Reuters Breakingviews) - Concise insights on global finance in the Covid-19 era.
BLANK TONGUES. Managers of special-purpose acquisition companies are giving investors the silent treatment. When hosting calls to explain their chosen transactions – such as Bespoke Capital Acquisition’s (BCu.TO) deal for Vintage Wine Estates, Jaws Spitfire Acquisition’s (SPFR.N) purchase of Velo3D , or BowX Acquisition’s (BOWX.O) deal with WeWork , SPAC executives and chieftains of their targets are not opening the line to questions.
Unlike a public company announcing a major deal, they don't tend to make themselves available other than for set-piece presentations. Often Q&A sessions on investor calls are little more than an opportunity for analysts to lavish praise on management anyway. And there are benefits to SPAC disclosures: They are usually detailed, including projections for the business, and everyone receives the same information.
Still, the no-questions habit misses any opportunity to put the architects of a SPAC deal on the spot publicly, perhaps even to address said projections . With the SPAC market red hot and the dealmakers in line for massive payouts, it's not unreasonable to think they should answer for their decisions. (By Lauren Silva Laughlin)
On Twitter http://twitter.com/breakingviews
Earlier in Capital Calls:
Archegos helps BlackRock SIFI case read more
One SPAC's numerous overambitions read more
UniCredit pays up for its next CEO
Turkish central bank revolving door hurts lira
Sberbank’s JV woes stress its own tech challenge
- SIGN UP FOR BREAKINGVIEWS EMAIL ALERTS http://bit.ly/BVsubscribe
Reuters Breakingviews is the world's leading source of agenda-setting financial insight. As the Reuters brand for financial commentary, we dissect the big business and economic stories as they break around the world every day. A global team of about 30 correspondents in New York, London, Hong Kong and other major cities provides expert analysis in real time.
Sign up for a free trial of our full service at https://www.breakingviews.com/trial and follow us on Twitter @Breakingviews and at www.breakingviews.com. All opinions expressed are those of the authors.