Silicon Valley periodically rediscovers the SPAC, or Special Purpose AcquisitionCorporation, when the overall stock market is healthy but startups are having trouble going public.
The scheme began in March 2010 when Wells Fargo was retained to provide financing for a potential acquisition of ATC Technology Corporation by GENCO Distribution System.
Companies and private equity funds shopping for U.S. biotechnology and pharmaceutical corporations have discovered a neat way to lubricate deals in a volatile market: place all the risk associated with the acquisition on the backs of investors in their target corporation.
The acquisition will be made by BP's joint-venture partner, Bridas Corporation, which is itself a joint-venture between Argentine tycoon Carlos Bulgheroni and CNOOC, China's state-owned oil company.
Devon Energy Corporation is an independent energy company engaged primarily in oil and gas exploration, development and production, and in the acquisition of producing properties.