(Reuters) -Online brokerage eToro and Betsy Cohen-backed blank-check firm FinTech Acquisition Corp V are planning to let the deadline for their merger pass without closing the deal, The Information reported, citing a person familiar with the matter. (https://bit.ly/3bFle4C)
The companies did not immediately respond to Reuters requests for comment on Thursday.
They had amended their merger agreement in late December to extend the deal deadline to June end and lower the Israel-based online stock brokerage’s valuation to $8.8 billion from $10.4 billion.
After taking Wall Street by storm in 2021, deals involving blank-check companies have seen a decline in interest this year due to rising regulatory scrutiny, a selloff in tech stocks and the poor share performance of companies that took the alternate route to go public.
In a bid to curb special-purpose acquisition companies (SPACS) from issuing overly optimistic earnings projections, the U.S. securities regulator has also unveiled a draft rule that would require them to disclose more details about their listings.
(Reporting by Manya Saini in Bengaluru; Editing by Aditya Soni)
