But he’s had a SPARC of inspiration, however many months too late.

Pershing Square Tontine Holdings is the biggest special-purpose acquisition company ever raised. With $4 billion in firepower, it is the Titanic of blank-check vehicles. And, well…

“If you find yourself in a leaky boat, often times you are better off switching boats than patching leaks to complete the mission,” [Bill Ackman] wrote on Twitter.

Having been stymied first by regulators’ annoying insistence he not rebuild his ship in the middle of an increasingly cold and inhospitable ocean, Ackman’s grand vessel ran into a totally bullshit iceberg of shareholder litigation.

While we believe the lawsuit is meritless, the nature of the suit and our legal system make it unlikely that it can be resolved in the short term. Even if the case were dismissed expeditiously, the plaintiff can then appeal. As a result, the mere existence of the litigation may deter potential merger partners from working with PSTH on a transaction until the lawsuit is finally resolved…. While we have been working diligently to identify and close a transaction, and we have begun discussions with potential merger candidates, our ability to complete a transaction in the required time frame has been impaired by the lawsuit.

And so allow him to invite you and all other PSTH shareholders onto these very luxurious lifeboats which will ferry you through the icy waves to an even bigger, better and investor-friendly vessel just as soon as they can.

All is not lost, however. As we have previously disclosed, we have been working on obtaining approval for the launch of Pershing Square SPARC Holdings, Ltd. (“SPARC”). If we are successful in securing SPARC’s approval, and I am confident that we will get it done, we will have a clear path to mitigate the harm that this litigation has and will continue to cause to PSTH shareholders and warrant holders…. As a reminder, SPARC, which we conceived of months ago and disclosed in connection with the UMG transaction, is a modified opt-in (rather than the current opt-out) SPAC structure where investors in PSTH would receive long-dated, transferable SPARC warrants to acquire common stock in SPARC, which we expect to be traded on the NYSE….

The principal benefit of SPARC is that it would not hold investors’ money while we are looking for a target. This eliminates the substantial opportunity cost of capital that burdens all SPAC investors.

letter to shareholders [Pershing Square Tontine Holdings]
Ackman Says He’ll Return SPAC Funds If New Vehicle Approved [Bloomberg via Yahoo! News]
SPACs Went Up, Then Down, but They’re Not Out [DealBook]

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