Majority of Ritchie Bros shareholders vote in favor of IAA deal-sources (updated)

RB Global

10/03/2023 18:16

(Adds details on vote, share reaction)
    By Svea Herbst-Bayliss
       NEW YORK, March 10 (Reuters) - A majority of Canada's
Ritchie Bros  RBA.TO  shareholders have voted in favor of the
company buying U.S. auto retailer IAA  IAA.N  in a deal that is
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, with large Ritchie Bros
investors announcing their support and opposition to the plan.
    Hedge fund Luxor Capital, which owns roughly 4.2% of Ritchie
Bros, has been urging other shareholders to vote against the
deal. The fund argued the deal is 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.
    Earlier this week, proxy advisory firms Institutional
Shareholder Services and Glass Lewis recommended Ritchie Bros
shareholders vote against the takeover. Smaller proxy adviser
Egan-Jones recommended shareholders vote for it.
        Ritchie Bros has argued the acquisition would unlock
substantial value that neither Ritchie Bros nor IAA could
achieve alone.

 (Reporting by Svea Herbst-Bayliss in Rhode Island; editing by
Grant McCool)
 ((svea.herbst@thomsonreuters.com; +617 856 4331; Reuters
Messaging: svea.herbst.thomsonreuters.com@reuters.net))