Kanders Acquisition Company SPAC Pulls its $400 Million IPO

The November 14, 2008 withdrawal of Kanders Acquisition Company (KAC) from SEC registration marks yet another casualty of the market's lack of appetite for SPAC IPOs. Even more telling about the general market environment is the end of this eponymous SPAC from a serial SPAC entrepreneur:

Warren B. Kanders, Director and Chairman of KAC is also a director of Highlands Acquisition Corp., a $138 million SPAC focused on the health care industry that is still looking for an acquisition target. Mr. Kanders was formerly the President of Kanders & Company, Inc. which sold Armor Holdings, Inc., a manufacturer and supplier of military vehicles, armed vehicles and safety and survivability products to BAE Systems plc on July 31, 2007.

KAC, which has been on file since October 24, 2007, was set to price its $400 million IPO on the American Stock Exchange with a sponsor purchase of 6,000,000 warrants at $1.00 per warrant and commitment to a limit order of up to $25 million of common stock around the time of target acquisition.

Citi, Wachovia and WM Smith Securities were set to underwrite the offering.

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