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Former Trump adviser intends to raise $ 600 million during the IPO of a shell company
Fictitious companies are created to enter the stock exchange and subsequent non-public transactions.
Gary Cohn, former economic adviser to the President of the United States Donald Trump, teamed up with an investor By Clifton S. Robbins, to raise $ 600 million in a front company initial public offering (IPO), which will serve as a seal for subsequent profitable deals.
Cohn is the latest in the US establishment to join Wall Street's SPAC series..
A decade ago, SPACs were considered a banking backwater but have grown into one of Wall Street's hottest spots in 2020, fueled by brilliant deals with space travel service provider Virgin Galactic Holdings Inc and fantasy sports company. and gambling DraftKings Inc.
Major financiers such as Bill Ackman, Michael Klein and Chamat Palihapitiya, and former Speaker of the United States House of Representatives Paul Ryan are among the sponsors of IPO SPAC in 2020.
SPAC is a special purpose acquisition investment company that raises money through an IPO to then buy an unspecified operating company to go public, usually within two years.
Gary Cohn's SPAC, Cohn Robbins Holdings Corp., will seek to sell 60 million shares in an IPO for $ 10 a share, and will be listed on the New York Stock Exchange under the ticker symbol «CRHC.U».
Why did major companies pay Trump’s personal lawyer through a shell company?
Cohn has been in talks with Robbins over the past month or so to join SPAC, according to a Reuters source familiar with the matter..
Former President and Chief Operating Officer of Goldman Sachs Group Inc., Cohn served in the Trump White House for just over a year and was the driving force behind the 2017 tax administration reform..
In February, Robbins told clients that he was closing his investment firm Blue Harbor Group to do something else..
Credit Suisse is the sole accounting manager of the IPO of Cohn Robbins Holdings.
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