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Bill Ackman Claims that he has not spoken with Elon Musk Concerning X’s Investment in Pershing’s “SPARC” Fund

In an interview with CNBC on Monday, activist investor Bill Ackman said he had not spoken with Elon Musk about a deal including X, formerly known as Twitter, but that he liked the company and Musk and that a deal with X would be acceptable if Musk wanted one.

“I have a great deal of respect for Musk, I believe Twitter is a tremendously important platform, I think he’s made amazing improvements to the platform, and I think it’s a very-difficult-to-disrupt kind of asset,” Ackman said in an interview with CNBC’s Andrew Ross Sorkin.

A SPARC, or special purpose acquisition rights business, was being discussed by Pershing Square Holdings’ billionaire CEO. Although the product resembles a SPAC, Pershing’s structure, according to Ackman, would only invest in businesses that it sees as long-term investments. Because SPACs favoured insiders and allowed them to make substantial gains off of disfavored investors, they attracted a great deal of investor and regulatory scrutiny.

Ackman singled out X’s crippling debt burden, which totals about $13 billion and is due to a group of banks, as a justification for Musk to accept the deal and sell a stake in X once more. Banks are dissatisfied and searching for ways to leave, according to a study from The Financial Times published last month.

Source (CNBC)

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