IAA gains as activist holder calls for sale of company or CEO to be replaced (update)
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Update 4:40pm: Adds IAA response.
IAA Inc. (NYSE:IAA)
rose 4.5% after shareholder Ancora Holdings called for the auto salvage company to either put itself up for sale or replace its CEO.
"Given IAAâs underperformance and the fact that the Companyâs market capitalization has plummeted by roughly 40% since reporting third quarter earnings in November 2021, the status quo cannot persist," Ancora Holdings wrote in a letter to IAA's board.

Ancora Holdings, which owns about 2% of IAA stock, believes IAA could see $55/share in a potential takeout. Ancora highlights that IAA competitor Copart (NASDAQ:CPRT) trades at roughly 17.5x forward EBITDA and has an approximately $27.5B market capitalization, while IAA trades at 11.2x forward EBITDA and has a $4.9B market capitalization.
IAA responded in a statement to Ancora's letter.
"The Company looks forward to continuing a constructive dialogue with Ancora and the Board will continue to take actions that are in the best interests of the Company and all of its shareholders," IAA said in the statement. 
Separately, IAA announced it expanded its market alliance network in El Salvador with Trans-Auto S.A. de C.V.