Two influential proxy advisory firms said shareholders of Ritchie Bros Auctioneers Inc. should vote against a takeover of IAA Inc., dealing a huge blow to the $6 billion deal.
(Bloomberg) — Two influential proxy advisory firms said shareholders of Ritchie Bros Auctioneers Inc. should vote against a takeover of IAA Inc., dealing a huge blow to the $6 billion deal.
Ritchie’s “strong standalone prospects, proven over a period of time through robust performance, offer a better understood and verified path to shareholder value creation,” proxy adviser ISS said in a note recommending against the deal. Glass Lewis & Co. also said investors should turn down the cash-and-stock transaction, which goes to a vote on March 14.
Ritchie shares jumped 5.7% to $62.41 at 9:38 a.m. in New York, while IAA tumbled 8%.
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