Sotheby's Takes Poison Pill After Loeb Attack

Oct 4 2013 | 11:01am ET

Sotheby's today responded to the blistering letter it received this week from Third Point's Daniel Loeb, adopting a poison pill that will keep the hedge fund from boosting its stake in the auction house much further.

The shareholder-rights plan will effectively prevent any non-passive investor from buying more than 10% of Sotheby's shares. Third Point is the company's largest shareholder with a 9.3% stake.

In a letter to Sotheby's CEO William Ruprecht this week, Loeb, a major art collector and Sotheby's client, demanded Ruprecht's departure and a seat on the company's board, decrying what he called a "lack of leadership and strategic vision at its highest levels," its "chronically weak operating margins and deteriorating competitive position" and "dysfunctional division and a fractured culture."

Sotheby's called Loeb's criticisms "incendiary and baseless."


In Depth

An Interview With Harvest Volatility Management's Rick Selvala

Mar 23 2017 | 5:39pm ET

Several years of extremely low interest rates have pushed some investors into equities...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

SEI: Private Debt Coming Into Its Own

Mar 8 2017 | 9:24pm ET

The explosive growth of private debt over the past few years has caused the lines...

 

From the current issue of