Shareholder activists who are searching for undervalued or underperforming companies could find an exceptionally target-rich environment among the SPACs that completed M&A deals in the last few years, Forbes reports. But successful SPACtivism, as it’s now called, won’t be as easy as it looks on the surface. Nothing worth doing is ever that easy.
While a SPAC’s lackluster valuation and sub-optimal governance structure may attract activists, it is far from certain that a campaign will succeed. The very same governance elements that leave SPACs open to criticism – such as dual classes of stock and staggered boards – also offer considerable protection in a potential proxy fight. Read more.
