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Regulators could gum up Spac surge

Critical comments from regulators appear to be scaring off some investors and new offerings

Investors are cooling to one of the hottest bets on Wall Street as new regulatory scrutiny of special-purpose acquisition companies cuts the flood of new issues to a trickle while share prices tumble.

SPACs have raised about $100bn so far this year, more than last year’s record of $83.4bn, which itself was more than the amount raised in the nearly 30-year history of these blank-check companies.

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