Hicks has formed himself a so-called “blank check” company, which sounds like good work if you can get it. Here’s the SEC filing that explains it all. In short, he pays $25,000 for a 20-percent stake of a buyout firm; the public pays $400 million (at 10 bucks a share) for the other 80 percent. The prospect leads one financially minded FBvian to wonder:
If institutional investors are seemingly no longer willing to back Hicks’ efforts, why should the public equity markets?