Hola from Spain! I’m on my first post-covid vacation, but I woke up this morning to news that Pershing Square Tontine (PSTH) was dropping their deal with UMG due to pushback from the SEC; instead, PSTH will pursue a “traditional” SPAC merger while Pershing Square (the fund) will take PSH’s place and buy 10% of UMG. In response to this drastic overstep by the SEC, stock market futures crashed:
Why would Ackman be concerned with call holders? I don't think a company owes any fiduciary duty to the interests of listed options owners as these are just deriviatives. I've certainly never seen their interests cited before.
At the moment, I would accept PSTH merger with almost ANY company. Why would any company want to merge with this fiasco? Companies that he wants to take a minority shareholder stake will just direct list or IPO traditionally... Excellent management team? They can't even read the rulebook in the SEC?
What is the exercise price of the tontine warrant? That is the warrant to buy PSTH after a target is announced, right? Why do you say it is "attached" to the shares given only shareholders got the shares from IPO have it, and not me buying PSTH right now? Thanks in advance for answering.
One curiosity was that the implied volatility of PSTH options has been completely crushed for the rest of the year. Historically, PSTH has hovered between 35-100% IV (often higher than Tesla, as you have noted yourself). PSTH is down to roughly 15% IV for the next few months, which makes it much harder to profit from selling calls on the underlying.
Why would Ackman be concerned with call holders? I don't think a company owes any fiduciary duty to the interests of listed options owners as these are just deriviatives. I've certainly never seen their interests cited before.
At the moment, I would accept PSTH merger with almost ANY company. Why would any company want to merge with this fiasco? Companies that he wants to take a minority shareholder stake will just direct list or IPO traditionally... Excellent management team? They can't even read the rulebook in the SEC?
What is the exercise price of the tontine warrant? That is the warrant to buy PSTH after a target is announced, right? Why do you say it is "attached" to the shares given only shareholders got the shares from IPO have it, and not me buying PSTH right now? Thanks in advance for answering.
2/9th warrants still attached to units…so yes buy today and you still get those the ones trading now are the initial 1/9th
One curiosity was that the implied volatility of PSTH options has been completely crushed for the rest of the year. Historically, PSTH has hovered between 35-100% IV (often higher than Tesla, as you have noted yourself). PSTH is down to roughly 15% IV for the next few months, which makes it much harder to profit from selling calls on the underlying.