Investors in Ken Moelis’s Atlas Crest Investment should vote against a merger with Archer Aviation and instead redeem their holdings in the blank-check company for cash, an influential shareholder adviser said in a report, according to Bloomberg.
The proposed merger with Archer, a developer of vertical take-off and landing electric aircraft that is mired in a legal battle over trade secrets, poses risk without the prospect of material gains for Atlas investors, Institutional Shareholder Services said in its report. The combined company will be valued at about $1.7 billion, a reduction of $1 billion from its enterprise value when the deal was announced in February, ISS said.
The SPAC shareholder vote on the merger is set for Sept. 14. Shares last traded this morning at $10. Read more.
