Shares of IAA Inc. soared more than 10% after an investment fund said Ritchie Bros Auctioneers Inc. likely has enough votes to secure approval for its takeover of IAA.
(Bloomberg) — Shares of IAA Inc. soared more than 10% after an investment fund said Ritchie Bros Auctioneers Inc. likely has enough votes to secure approval for its takeover of IAA.
New York-based Luxor Capital Group, a Ritchie shareholder that has been campaigning against the $6 billion cash-and-stock deal, said a preliminary tally by its proxy solicitor shows that 46% of votes have been cast against the transaction.
“Despite our best efforts on behalf of all shareholders, and our disappointment in the outcome, we wish the company well with its integration of IAA,” Luxor President Doug Snyder said in a statement. A spokesperson for Ritchie did not reply to a request for comment.
IAA was up 10.4% to $41.51 as of 2:56 p.m. in New York, while Ritchie was down 3.7%. Those moves narrowed the spread on the deal to less than 80 cents.
Ritchie and IAA shareholders will hold shareholder meetings on March 14 to complete their votes on the deal.
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