Spartan Energy soars 37% as it reportedly takes pole position in a bidding war for electric-vehicle maker Fisker
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Matthew Fox
Jul 10, 2020, 20:30 IST
Fisker
Spartan Energy Acquisition Corp. soared 37% on Thursday after it was reported by Reuters that the "blank check" company was in the lead of a bidding war for electric vehicle maker Fisker.
Investors have been clamoring for early-stage EV startups like Nikola Corp. and Workhorse in hopes of buying the next Tesla, which has seen a year-to-date rally of 233%.
According to the report, Spartan Energy, backed by Apollo Global Management, is close to "clinching" the $2 billion deal, and is competing with other SPACs that are looking for an acquisition.
Spartan Energy Acquisition Corp, a "blank check" company backed by Apollo Global Management, soared as much as 37% on Thursday after it was reported by Reuters that Spartan was in the lead of a bidding war for electric vehicle maker Fisker.
Spartan Energy is bidding against other special purpose acquisition companies, or SPACs, to bring Fisker public via a reverse merger.
The bidding war has likely intensified after the management teams of SPACs that are in search of an acquisition saw the trading activity of small electric vehicle makers like Nikola Corp., Workhorse, and Tortoise Acquisition Corp.
Nikola also went public last month via a reverse-merger with VectorIQ Acquisition Corp., a SPAC. Nikola shares are up 446% since its merger was announced in March.
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Fisker was founded by Henrik Fisker, a well-known car designer who previously worked for BMW and Aston-Martin. Fisker plans to sell its electric SUV, the Ocean, in 2020 at a base price of $37,500.
Spartan Energy Acquisition Corp. began trading in 2018 after the company raised $552 million in a public offering. The SPAC said it would use the funds to acquire a US company within the energy industry.
Spartan Energy surged 37% to hit $14.82 in Thursday trading.
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