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March 12, 2008

All Business: 'Blank check' firms are a blind bet for investors

  • One expert says investors are taking a significant risk because they are investing in a company without any idea of what will be acquired.
    • By RACHEL BECK
    AP Business Writer

    NEW YORK — Not all investors today are running away from risk amid the financial market turmoil. There's a flood of money flowing into companies with no earnings or assets to speak of.

    So-called “blank check” companies, founded by some of Wall Street's marquee names, are the hottest sector for stock offerings this year. Major stock exchanges are clamoring to list these investment shells that use their IPO proceeds to acquire other businesses.


     
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