What's Going On With Pershing Square Tontine Holdings (PSTH) Today?

Pershing Square Tontine Holdings Ltd PSTH is trading lower Thursday night following a report by the Wall Street Journal stating that the Bill Ackman-backed SPAC is nearing a deal with Universal Music Group that would value the world's largest music company at around $40 billion.

The report, which cited people familiar with the matter, said it would be the largest SPAC deal to date and noted that the deal is not yet finalized. 

Ackman was asked about his PSTH SPAC at the Wall Street Journal's Future of Everything Festival on May 12.  The billionaire hedge fund manager told the Wall Street Journal that he had been working on a deal with an "iconic company" since November.

Related Link: Bill Ackman Talks, The Timeline Reacts: What Pershing Square SPAC Is Looking At To Buy ... Maybe

Tontine Structure: The structure of PSTH is unique in that it offers two-ninths of a warrant with each share, exercisable at $23. 

Investors do not receive the warrants if they choose to redeem their stock prior to the closing of the acquisition. The structure was formed in order to encourage long-term investments in the SPAC.

Price Action: PSTH stock began trading at the IPO price of $20 per share in September 2020. Since that time, it has traded as high as $34.10. 

At last check Thursday, PSTH was trading down 5.36% in after-hours trading on Thursday at $23.65.