According to United First Partners (UFP), Ritchie Bros. (RBA) plan to acquire IAA Inc. (IAA) has a 70% chance of being approved by ISS and Glass Lewis.
According to an article at Seeking Alpha, it states that ‘UFP wrote in a note which read that a former IAA senior executive said: “we walked away from the call with an incrementally positive stance towards the transaction in terms of RBA management’s ability to turn IAA around, the potential for IAA to better compete and react to CPRT, and for the pro forma company to deliver on the cost synergy side.”
A UFP prediction comes as investors expect influential proxy services to release their opinions about the deal shortly as they usually announce decisions two weeks before a special meeting, which is scheduled for March 14.
The deal has received support from RBA and IAA, and has seen holders come out against the transaction. RBA shares initially plunged 18% when the original $7.3 billion IAA deal was announced in November, with some analysts questioning the transaction.
According to Seeking Alpha: ‘In January, RBA sweetened its offer for auto salvage company IAA with a larger cash component as Starboard Value LP made a $500M investment in RBA.’
RBA holders Janus Henderson, Luxor Capital and Eminence Capital have come against the deal, while IAA holder Ancora has supported it. Franchise Partners and Eagle Asset Management, which together own ~8% of RBA shares, are supportive of the transaction.