Trump plans for Spac deal suffer further blow

0
27

Donald Trump’s plans to merge his media business with a blank-cheque company have suffered a further blow after it emerged that a federal grand jury has issued subpoenas to the company and its board.

Digital World Acquisition Corp, the special purpose acquisition company, said in a regulatory filing on Monday that a federal grand jury in New York had issued subpoenas to the company and to each member of the board.

The subpoenas also demanded a series of documents, including “communications with or about certain individuals”.

A federal grand jury is a group of individuals who decide whether a prosecutor has enough evidence to bring legal action.

US regulators were already investigating Digital World, seeking information on trading before the deal was announced in December with Trump Media and Technology Group.

“These subpoenas, and the underlying investigations by the Department of Justice and the SEC . . . could materially delay, materially impede, or prevent the consummation of the business combination,” said the filing.

Source