Investment vehicle probed over merger with Trump media company

Investment vehicle probed over merger with Trump media company

The investment firm seeking to merge with Donald Trump's social media company disclosed grand jury subpoenas that could threaten the deal
The investment firm seeking to merge with Donald Trump's social media company disclosed grand jury subpoenas that could threaten the deal. Photo: Chris DELMAS / AFP/File
Source: AFP

PAY ATTENTION: Click “See First” under the “Following” tab to see YEN.com.gh News on your News Feed!

The investment vehicle seeking to merge with Donald Trump's social media venture disclosed Monday that it received federal subpoenas, delaying and potentially derailing the transaction.

Digital World Acquisition said that it and its board members received grand jury subpoenas on issues that include due diligence on the Trump venture and communications with potential merger partners other than the Trump venture, according to a Securities and Exchange filing.

The subpoenas from the Southern District of New York are connected to a Justice Department probe that "could materially delay, materially impede, or prevent the consummation of the Business Combination," the filing said.

First launched in September on Wall Street, DWAC was established as a special purpose acquisition company (SPAC), sometimes called a "blank check" company set up with the sole purpose of merging with another entity that is announced after the entity goes public.

Read also

Credit Suisse fined over drugs gang money laundering

In late October, DWAC announced the plan to combine with Trump's venture to establish "a rival to the liberal media consortium."

The deal, which would provide Trump's venture $1.3 billion in capital and a stock market listing, has been under SEC investigation for months on similar questions raised by the DOJ subpoenas.

PAY ATTENTION: Enjoy reading our stories? Join YEN.com.gh's Telegram channel for more!

The SEC probe has focused on whether talks were held between Trump's team and DWAC figures prior to the public offering, according to a New York Times report. SPACs are not supposed to have a target lined up before selling shares.

Shares of DWAC slumped 9.4 percent to $25..22 in afternoon trading.

Source: AFP

Authors:
AFP avatar

AFP AFP text, photo, graphic, audio or video material shall not be published, broadcast, rewritten for broadcast or publication or redistributed directly or indirectly in any medium. AFP news material may not be stored in whole or in part in a computer or otherwise except for personal and non-commercial use. AFP will not be held liable for any delays, inaccuracies, errors or omissions in any AFP news material or in transmission or delivery of all or any part thereof or for any damages whatsoever. As a newswire service, AFP does not obtain releases from subjects, individuals, groups or entities contained in its photographs, videos, graphics or quoted in its texts. Further, no clearance is obtained from the owners of any trademarks or copyrighted materials whose marks and materials are included in AFP material. Therefore you will be solely responsible for obtaining any and all necessary releases from whatever individuals and/or entities necessary for any uses of AFP material.