Churchill Capital IV sputters since announcing Lucid Motors deal
25/02/2021 12:33
** Churchill Capital Corp IV CCIV.N wavers before the
bell. Shares fall as much as 7% and now edge into positive
territory
** Michael Klein-backed SPAC has plummeted ~50% in 2-session
skid since announcing highly-anticipated merger to take EV maker
Lucid Motors public late Mon
** Stock on Weds fell 18.5% to $28.70, a 3-week low, and far
below intraday peak of $64.86 hit last Thurs
** At Weds close price, CCIV shares imply ~$46 bln market
cap for Lucid once the deal closes
** That's still a sizable premium to the deal's $24 bln
equity value, which included a $2.5 bln PIPE (private investment
in public equity) from Saudi Arabia's Public Investment Fund,
Blackrock and others struck at $15/shr urn:newsml:reuters.com:*:nL4N2KS4YJ
(Lance Tupper is a Reuters market analyst. The views expressed
are his own)
((lance.tupper.tr.com@reuters.net
lance.tupper@tr.com 1-332-219-1430))