Billionaire investor Bill Ackman is running out of time to find a target for his $4 billion special purpose acquisition company. Pershing Square Tontine Holdings needs to identify a company to acquire within the next six weeks, or Ackman will have to return all its cash to his investors. Ackman has subsequently urged the SEC to extend its deadline, but it’s looking increasingly likely that he’ll have to return $4 billion worth of cash to PSTH’s initial investors.
“Unless Ackman comes up with some magic in an extremely volatile and uncertain market, he will be returning the $4 billion,” Jim Osman, founder of the Edge Consulting Group, told Insider. “Bill and Pershing face an uphill battle,” Edge Consulting’s Osman added. “Selling SPACs to investors is now virtually impossible.”