Majority of Ritchie Bros shareholders vote in favor of IAA deal -sources
Reuters
Published Mar 10, 2023 01:22PM ET
Updated Mar 10, 2023 02:41PM ET
By Svea Herbst-Bayliss
NEW YORK (Reuters) -A majority of Canada's Ritchie Bros (NYSE:RBA) shareholders have voted in favor of the company buying U.S. auto retailer IAA (NYSE:IAA) in a deal valued at roughly $7 billion, people familiar with the preliminary tally said.
The cash and stock deal, first announced in November, has become one of the year's most contested.
Hedge fund Luxor Capital, which owns roughly 4.2% of Ritchie Bros, had been urging shareholders to vote against the deal. The fund argued that the deal was risky and would distract Ritchie Bros, which auctions used heavy equipment and trucks, from its core business and hurt shareholders.
IAA's stock price jumped 10% on the news of a majority of Ritchie Bros investors voting for the deal.
Spokespeople for Ritchie Bros and IAA did not immediately respond to requests for comment.
Proxy advisory firms Institutional Shareholder Services and Glass Lewis earlier this week recommended that Ritchie Bros shareholders vote against the takeover. Smaller proxy adviser Egan-Jones recommended that shareholders vote for it.
Ritchie Bros has argued that the acquisition would unlock substantial value that neither Ritchie Bros nor IAA could achieve alone.
Luxor in a statement said it was disappointed by the outcome after its solicitor tabulated that 46% of the votes cast voted against the deal, not enough to scuttle it.
"We wish the Company well with its integration of IAA," Luxor President Doug Snyder said, also thanking shareholders for supporting its "fact-based campaign."
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.