Shareholders advised to reject Ritchie Bros bid for IAA

Deal in limbo: Vehicles to be sold in the next auction at the Ritchie Bros Auctioneers in Longmont, Colorado. The company’s stock price was up nearly 3% in early afternoon trading yesterday. — Reuters

NEW YORK: Proxy advisory firms Institutional Shareholder Services (ISS) and Glass Lewisis recommending that shareholders reject Ritchie Brothers Auctioneers (RBA) Inc’s planned US$7bil (RM31bil) acquisition of US auto retailer IAA Inc.

As investors often follow recommendations from the proxy firms, the move deals a blow to one of the year’s most widely watched takeover deals, which was first announced in November.