Billionaire Bill Ackman is reportedly interested in striking a deal with Elon Musk's X corp as part of a new investment vehicle, according to The Wall Street Journal.
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Ackman to Enter Deal with X Corp.
Ackman's Pershing Square, which is a new investment vehicle, received its regulatory approval last September 29. The company is now targeting private companies to raise $1.5 billion or more with the possibility of taking it to the public. According to Bloomberg, the product is a new class of special purpose acquisition companies (SPARC) which would allow investors to buy into the company after identifying a purchase target.
In a recent interview, Ackman mentioned that X is "absolutely" one of the companies that he is considering for the venture. However, he cleared that he is not sure if X Corp. would be interested or if the deal is doable between the two.
However, WSJ argued that the chances of pulling X for a deal are not great. For one, X is still in $12.5 billion debt after Musk privatized the company upon acquisition.
Ackman's SPARC
In an X post, Ackman announced its plans with SPARC. "If your large private growth company wants to go public without the risks and expenses of a typical IPO, with Pershing Square as your anchor shareholder, please call me," he wrote.
The billionaire also promised a quick yes or no deal upon inquiring. As per the vehicle's regulatory filing, companies that could fit the bill must be "private-equity-owned businesses or divisions of public companies" that are eyeing initial public offerings.
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