(Bloomberg) -- Hedge fund Luxor Capital Group stepped up its attack on Ritchie Bros. Auctioneers Inc.’s plan to buy another firm for $6 billion, saying Ritchie executives manipulated forecasts to strengthen their case for the deal.   

Ritchie has understated the future profitability of its core auction business to help justify the decision to take over IAA Inc., New York-based Luxor says in a presentation seen by Bloomberg News. Ritchie’s senior executives lowered the company’s projected growth rate, and increased capital expenditures, in order to make the math work on the acquisition, Luxor claims. 

The document is part of the investment firm’s proxy fight against the transaction, which goes to a shareholder vote on Mar. 14. 

The deal has run into opposition from several investors who say that Ritchie, a Canadian company that auctions construction and industrial equipment, is making a mistake by diversifying into the salvage-vehicle business. With 3.8% of the shares, Luxor is one of Ritchie’s largest shareholders, according to data compiled by Bloomberg. 

“We think Ritchie is a terrific standalone business. It continues to accelerate, and that’s evidenced by its most recent earnings report,” Luxor President Doug Snyder said in an interview. “We think IAA is by itself a troubled asset — and clearly, based on the proxy, there’s no other buyer.”

Ritchie’s stock price fell 18% on the day it was announced, but has since risen to just above its pre-deal level. 

“This performance, together with feedback we are hearing in our shareholder meetings, makes clear to us that Ritchie Bros. shareholders increasingly understand the compelling value creation opportunity from the IAA transaction,” Ritchie said in an emailed statement provided by an outside spokesperson in response to a query from Bloomberg News. 

The company has used forecasts that are “in line” with analysts’ estimates, according to the statement. “Luxor’s claims are deceptive, based on faulty math and self-serving, including asserting unrealistically low capex,” the company said.

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