Posted on Nov 18, 2020 at 8:54 amUpdated Nov 18, 2020 8:59 AM
Short sellers are attacking the speculative bubble of “SPAC”, those companies introduced on the stock exchange by the fast and simplified way of “special purpose acquisition company”. These structures raise money on the stock market for the sole purpose of carrying out acquisitions of unlisted groups. The latter then enter Wall Street through the back door, via the SPAC, and not directly through a classic very marked and framed IPO. In doing so, they stoke the mistrust of those who are paid to be skeptical and suspicious: short sellers who track down frauds and companies in difficulty.
After Nikola, MultiPlan is in their sights. One of the most famous short sellers, Muddy Waters founded by Carson Block and known in France for having attacked the Casino group, is betting on the fall of the shares of this company in the health sector. It went public this summer through Wall Street’s largest SPAC, at $ 11 billion. The latter was created at the initiative of one of the former stars of Wall Street mergers and acquisitions, Michael Klein, a former Citigroup.