Ancora secures Ritchie Bros stake, criticizes investors opposing $6 bln IAA deal (updated)
08/02/2023 20:38
(Updates with statement from Luxor, background)
By Svea Herbst-Bayliss
NEW YORK, Feb 8 (Reuters) - Ancora Group Holdings, a key
shareholder in U.S. auto retailer IAA IAA.N , has accumulated a
new 0.5% stake in Canada's Ritchie Bros Auctioneers RBA.TO and
is calling a major opponent of Ritchie's $6 billion deal to buy
IAA "misinformed," documents seen by Reuters on Wednesday
showed.
In a presentation seen by Reuters, activist investor Ancora
supported Ritchie chief Ann Fandozzi and took aim at hedge fund
Luxor Capital Group, a vocal opponent of the deal.
Luxor has said the acquisition would distract Ritchie, which
auctions used heavy equipment and trucks, from its core business
and hurt shareholders.
In its presentation, Ancora, which owns 1.92% of IAA as well
as the new 0.5% stake in Ritchie, called Luxor's analysis
"misinformed" and said its interests were "seemingly
misaligned". Ancora noted that Luxor's Ritchie stake doubled
over the past three months while "short interest in IAA was
increasing in parallel."
A spokesperson for Luxor said the firm reviewed the "wildly
inaccurate and incorrect statements of other shareholders" and
added it wants to "focus on what matters here – preserving value
for other long-term shareholders of RBA (Ritchie) like
ourselves."
Ancora, which has successfully pushed for change at retailer
Kohl's KSS.N and toymaker Hasbro HAS.O , last month threw its
weight behind the tie-up after Ritchie amended the terms.
The changes offer IAA shareholders more cash and reduce the
dilution for Ritchie shareholders. Shareholders of both
companies vote on the deal at special meetings on March 14.
The companies will soon present their case to proxy advisory
firms ISS and Glass Lewis, which will make recommendations on
how shareholders should vote.
Eagle Asset Management and Independent Franchise
Partners have lined up alongside Ancora to support the deal.
Boston Partners recently took a 1.5% stake in Ritchie. On the
other side, Deep Field Asset Management joined Janus Henderson
Investors in coming out against the deal.
Ritchie's stock price was up 1.16% on Wednesday as the
broader market was down.
(Reporting by Svea Herbst-Bayliss; Editing by Jamie Freed and
Cynthia Osterman)
((svea.herbst@thomsonreuters.com; +617 856 4331; Reuters
Messaging: svea.herbst.thomsonreuters.com@reuters.net))