Three SPAC Deals on Deck This Week and More (TLB, BPW, AXG, CFQCF, AUTC)

We have been given some exclusive coverage on the recent developments in special purpose acquisition companies and blank check companies from SPACupdate.com this morning.  Talbots Inc. (NYSE: TLB) is up for review this Friday, and we have developments in Warrants in Atlas Acquisition Co. (AMEX: AXG), China Fundamental Acquisition Co. (OTC: CFQCF), and AutoChina International (NASDAQ: AUTC).

Shareholders have shorted The Talbots Inc. (NYSE: TLB) in recent weeks and BPW Acquisition Co.’s (AMEX: BPW) shares are trading much closer to their trust value, despite both companies’ stock taking off after their December deal announcement. Initially, investors bought shares of BPW at nearly $1 over trust and Talbots stock hit $13.90, before both took a plunge on shareholder skepticism. With a deal vote coming Friday, the SPAC’s warrants could be overpriced at $1.10. Investor Integrated Core Strategies recently unloaded most of its warrants in BPW, it reported in a SEC filing. SPACupdate.com will continue to monitor the deal situation this week; the TLB-BPW merger goes before the SPAC’s shareholders for a vote Friday. It remains to be seen how BPW’s warrant vote will unfold.

Warrants in Atlas Acquisition Co. (AMEX: AXG) have slid lately as the SPAC’s deal deadline approaches. Shareholders supporting the deal point toward lingering unemployment as a signal that Select Staffing, the temp worker service Atlas plans to buy, will trade well post-close. Also, Federated Investors is backing the deal. Whether or not hedge funds can kill the deal remains to be seen; the SPAC has not yet announced any buyback plans. Atlas’ deal vote also comes Friday.

Foreign investors have given rise to SPACs overseas, also, and they look very familiar to their American predecessors. On the Frankfurt Stock Exchange, Helikos SE (HIT, HIT1) shares and warrants have not traded well in the days since the SPAC began listing 25 million units. The €200 million ($272 million) SPAC has 24 to 30 months to wrap up a merger with a German company and engage at least 65% of its shareholders or they will be redeemed about €9.96. Warrants are exercisable at €9 and do not expire for five years.

China Fundamental Acquisition Co. (OTC: CFQCF) got a big boost Monday when, sources say, the SPAC’s management locked up a big portion of shares it needed to keep a no-voter out. The SPAC, which has seen its warrants trade up to $1.10 and shares trade well beneath trust in weeks closing up to its Friday vote date, is said to be a lock to complete its deal to bring public Beijing Wowjoint Machinery Co.

AutoChina International (NASDAQ: AUTC), the Chinese car financing company brought public in 2009 via Spring Creek Acquisition Co., filed paperwork with regulators to raise more than $300 million in additional securities sales. Since being brought public, the company has traded in excess of 475% of the SPAC’s IPO value.

Now that foreign markets have adopted SPACs, we expect that more blank checks will be launched in Europe and Korea.

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