Dissatisfied Adesa investor Royce sells more than 1 million shares of company stock

By Lisa Kerner

Charlotte, N.C., March 9 - Adesa, Inc.'s largest shareholder Royce & Associates, LLC sold 1,067,400 shares of the company's common stock between Feb. 9 and March 6 priced from $27.30 to $28.71, according to a schedule 13D filing with the Securities and Exchange Commission.

Royce & Associates beneficially owns 5,425,075 shares, or 5.98%, of the Carmel, Ind., wholesale vehicle auction and dealer financing company.

Charles M. Royce, president of Royce & Associates, recently criticized Adesa's proposed merger with a group of private equity funds in a letter to board chairman David G. Gartzke.

Royce objected to the acquisition price of $27.85 per share, the auction process and potential conflicts of interest, according to a schedule 13D filed with the SEC on Jan. 30.

According to Royce, a price of $35.00 per share for Adesa would be more in line with industry comparables.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.