CA - IAA Inc. holder Ancora said to oppose sale to Ritchie Bros.

IAA Inc. ( NYSE: IAA ) holder Ancora Holdings is said to plan to vote against the auto salvage company's sale to to Ritchie Bros. ( NYSE: RBA ) as the company believes the sale process was flawed and structured to benefit management.

Ancora Holdings, which has a 4% stake in IAA, said that while it believe Ritchies Bros. is a logical acquirer for IAA, it has issues with the purchase price and lack of go-shop period associated with transaction, according to traders, who cited a Bloomberg report, which cited a letter to IAA's board from Monday.

"We view IAA's proposed sale to Ritchie Bros. as a poorly structured sweetheart deal that puts leadership's interests ahead of shareholder's best interest," Ancora CEO Frederick DiSanto and President James Chadwick wrote in the letter. "If the current structure and terms remain intact, we intend to do everything in our power to oppose the transaction."

The IAA opposition comes as Ritchie Bros. ( RBA ) shares plunged 18% on the day the $7.3 billion IAA deal was announced last Monday, with some analysts questioning the transaction. Ritchie Bros. shares gained 1.7% in premarket trading on Monday.

The sale announcement comes after activist Ancora in March called for IAA ( IAA ) to either put itself up for sale or replace its CEO. Ancora said at the time that it believed IAA could see $55/share in a potential takeout.

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