Finance

London stock exchange boss sounds the alarm on SPAC ‘froth’

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LONDON — Special purpose acquisition companies, or SPACs, are showing signs of “froth” in the U.S. — and that doesn’t bode well for investors, the boss of London’s stock exchange warned Friday. 

“There has been some recognition of the froth in the U.S. market,” London Stock Exchange Group (LSEG) CEO David Schwimmer told CNBC’s “Squawk Box Europe.”

“I think it’s important that investors, regulators, market participants use SPACs appropriately,” he said.

 

Excess in the U.S. SPAC market “could end poorly” for investors, Schwimmer told reporters later in the day, according to Reuters.

 

SPACs are shell companies that raise funds in a public offering to take a privately-held firm public via…



Source cnbc.com

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