News of shareholders rights plan or a plunge in fourth quarter earnings — which one shaved more than $150-million off the market capitalization of Ritchie Bros. Auctioneers Inc. (RBA/TSX) as of roughly 2:30 p.m. ET on Thursday?
Ritchie Bros. said fourth quarter earnings fell to US$9.8-million from US$14.2-million a year earlier, but given that its shares are relatively illiquid, it is not surprising that significant news caused a major fluctuation for the stock price.
While the industrial equipment auctioneer says the rights plan is not a response to any specific takeover proposal or in anticipation of any such bid, it says it will “ensure the fair treatment of shareholders in the event of any take-over offer for the company’s common shares.

Posted: 02|23|07 at 10:03 am. Filed under: Auction News.