Satellite bets big on shell companies

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By Pete Gallo

New York-based Satellite Asset Management, the multibillion-dollar distressed-and-credit shop started by former Soros star Lief Rosenblatt, is on a SPAC buying spree.

Special purpose acquisition companies, also known as “blank check” companies, are essentially publicly listed shell corporations created with the sole purpose of buying up distressed or emerging companies. The American Stock Exchange is heavy with SPACs these days. A third of all of the initial public offerings listed so far in 2007 fall into this category, according to Dealogic. And a notable number are winding up in Satellite Asset Management’s portfolio.

Other hedge funds, such as