Janus Henderson Investors joins Luxor in opposing Ritchie Bros’ planned acquisition of IAA

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‘We have significant misgivings about the strategic and financial rationale for this deal,’ two Janus Henderson portfolio managers and an analyst said in a letter to the Ritchie Bros Board of Directors

for IAA by 28 per cent, valuing the U.S. auto retailer at $5.94-billion, and also secured the backing of a key IAA shareholder that had questioned the initial offer.“We have significant misgivings about the strategic and financial rationale for this deal, and think the structure and timing are concerning,” two Janus Henderson portfolio managers and an analyst said in a letter to the Ritchie Bros Board of Directors included in a securities filing.

“While we see some strategic merits to the merger, specifically synergies with the real estate footprint and some ability to share technology, we do not believe they are sufficient to justify the risk associated with the transaction,” they said.The letter added that Janus Henderson, which owns a 3.44 per cent stake in Ritchie Bros according to Refinitiv Eikon data, and has held the stock continuously for over 10 years, intends to vote against the transaction.

 

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