for major expansion in the United States, making it more challenging for the Canadian company to pull off its planned US$6-billion takeover of a U.S. auto retailer.
The proposed takeover has remained hotly contested since, and is a rare transaction that initially drew rebukes from some shareholders of both the acquirer and the target. In a recommendation report Monday, ISS said “the potential risks associated with this transaction appear to outweigh the potential upside articulated by the board. Credibility is a particularly important consideration in this case, and it has been impaired by the shifting narratives around the long-term strategy and evergreen targets, as well as the miscalculated treatment of shareholders’ concerns during the assessment of revised terms.
Ritchie Bros. shares climbed three per cent higher by early afternoon Monday, while IAA’s dropped seven per cent. Ritchie Bros. shares have gained 22 per cent since their drop after the deal was announced in November, but they remain below where they were trading before news.