UK SPAC Deal Derailed on Claims of Abusive Investor Behavior

A SPAC merger that was set to bring a UK steel distributor public has been canceled after allegations of abusive behavior by purported shareholders in the blank check firm.

(Bloomberg) — A SPAC merger that was set to bring a UK steel distributor public has been canceled after allegations of abusive behavior by purported shareholders in the blank check firm.

The special-purpose acquisition company tie up that would’ve resulted in Megasteel Ltd. going public later this year was called off after groups claiming to be investors in the acquirer, More Acquisitions PLC, approached the target’s management and owners using “abusive and threatening behaviour,” according to a Wednesday statement from More. 

The “unwarranted tirade of abuse and vitriol directly addressed” at Megasteel’s owners and board led the company to withdraw its merger, the statement said. 

The “aggressive, abusive and threatening behaviour, targeted directly at Megasteel’s owners and managers, is totally unacceptable,” More said in the statement. 

The SPAC, which has been halted since the merger’s announcement in September, intends to resume trading as soon as possible and publish details about its cash position, according to the statement. The blank check will also restart its review process with a goal of identifying other suitable acquisition opportunities for More.

A representative for Megasteel declined to comment beyond the statement from More. More didn’t respond to an emailed request for comment and a representative declined to comment when reached by phone.

(Adds Megasteel representative declined to comment.)

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