IAA - Ritchie Bros. holder Janus Henderson intends to vote against IAA Inc. acquisition

Ritchie Bros. holder Janus Henderson ( NYSE: RBA ) said it's against the company's planned acquisition of auto salvage company IAA Inc. ( NYSE: IAA ) and plans to vote against it. Ritchie Bros. rose 1.7%, while IAA fell 0.8%.

"At the core, we believe the merger would introduce a level of unnecessary risk for Ritchie Brothers shareholders," Janus Henderson portfolio managers wrote in a letter Monday to Ritchie Bros. board.

Janus Henderson is the second Ritchie Bros. ( RBA ) holder to come out publicly against the IAA ( IAA ) deals since it was revised last Monday. The deal was amended to include a larger cash component and Starboard Value LP made a $500 million investment in Ritchie Bros as part of the reworked transaction.

The Janus opposition comes after RBA holder Luxor Capital last Tuesday said it was still against the deal following the new terms. Earlier this month Luxor filed a preliminary proxy in opposition to the deal. The Luxor opposition followed as Ritchie Bros. ( RBA ) shares plunged 18% on the day the $7.3 billion IAA deal was announced in November with some analysts questioning the transaction. Last month IAA holder Ancora Holdings said it planned to vote against the auto salvage company's sale to to Ritchie Bros.

As part of the revised deal announced last Monday, activist  Starboard Value 's CEO Jeffrey Smith is set to join Ritchie Bros.' ( RBA ) board.

"In summary, we have significant misgivings about the strategic and financial rationale for this deal, and think the structure and timing are concerning," the Janus Henderson portfolio managers added in the letter. "Based on our current understanding and the current deal terms, it is our intention to vote against the transaction.

Ritchie Bros. ( RBA ) is set to report Q4 results on Feb. 21.

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