Capital Calls-SPAC silence isn’t golden

Wework

30/03/2021 18:38

(The author is a Reuters Breakingviews columnist.  The opinions
expressed are their own.)
    NEW YORK, March 30 (Reuters Breakingviews) - Concise
insights on global finance in the Covid-19 era.
 
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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  urn:newsml:reuters.com:*:nL1N2LL1BH,
or BowX Acquisition’s  BOWX.O  deal with WeWork  urn:newsml:reuters.com:*:nL8N2LO4JD,
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  urn:newsml:reuters.com:*:nL1N2IG1YY. 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  urn:newsml:reuters.com:*:nL1N2LS1PL    
    One SPAC's numerous overambitions  urn:newsml:reuters.com:*:nL1N2LS1EJ
    UniCredit pays up for its next CEO  urn:newsml:reuters.com:*:nL8N2LS52O 
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 (Edited by Richard Beales and Amanda Gomez)