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Lucid Motors’ SPAC deal hits loopy roadblock

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Derek Jenkins, VP of Design at Lucid Motors, introduces the alpha prototype of the Lucid Air at the 2017 New York International Auto Show in New York City, U.S. April 13, 2017. REUTERS/Andrew Kelly - HP1ED4D16CEI7

MELBOURNE, July 23 (Reuters Breakingviews) - Michael Klein is discovering the downside of stock-market fame. The Wall Street rainmaker’s blank-cheque firm Churchill Capital Corp IV (CCIV.N) became a darling of retail investors in February. Talk that it was going to buy electric-vehicle startup Lucid Motors pushed shares in the special-purpose acquisition vehicle up almost sixfold ahead of the deal. Now not enough of the stock’s owners seem to realise they have to vote to approve the combination they were so enamoured by, the Financial Times reports.

Some 97% of those who cast a ballot voted for the tie-up, but at least half of the SPAC’s shareholders need to approve it. Having fallen short, the companies reconvened the meeting for Friday morning, with Klein and Lucid boss Peter Rawlinson pleading with shareholders to vote “as soon as possible”. It's a muddled, loopy start to one of the most high-profile SPAC transactions. (By Antony Currie)

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Editing by Una Galani and Katrina Hamlin

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