CA - Major Ritchie Bros. investor reiterates opposition to IAA deal

2023-03-13 11:11:45 ET

Ahead of a key shareholder vote on Tuesday, Luxor Capital voiced its concerns with the proposed merger between IAA ( NYSE: IAA ) and Ritchie Bros. ( NYSE: RBA ).

The proposed merger could result in “irreversible damage” to Ritchie Bros. ( RBA ), according to the investor. Namely, Luxor argued the deal could result in customer attrition, damage to the corporate culture at the company, and distract from the core business. These sentiments dovetailed with a letter from the company’s co-founder David Ritchie and former COO C Russell Cmolik.

“Luxor was gratified to read an unequivocal message from the individuals who created and built Ritchie Bros. that the IAA Merger must be stopped,” Luxor president Doug Snyder said of that letter. “Their comments are clear and their motivations unquestionable. They love the Company they built and believe the IAA Merger will cause permanent harm to Ritchie Bros.’s business.”

Despite the proxy deadline having passed, Luxor urged shareholders to revoke their proxies cast in favor of the merger. Preliminary voting showed the deal was approved by a majority of shareholders on Friday .

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