Sotheby's Responds To Hedge Fund Criticism

Jan 29 2014 | 12:02pm ET

Sotheby's has offered an rich olive branch to the activist hedge funds seeking to shake up the staid auction house.

Sotheby's said today that it would pay out a special dividend and open a share buyback program, returning $450 million to shareholders. It also pledged to split its agency and financial services businesses.

The move comes four months after Third Point demanded the resignation of Sotheby's CEO William Ruprecht, among other major changes designed to improve returns for shareholders. Third Point's call was echoed by Marcato Capital Management, which today dismissed the moves.

"Sotheby's can and should return a total of $1 billion of capital to shareholders within 12 months," it said. Third point did not comment on the Sotheby's plan.


In Depth

Kettera Q&A: The Advantages of Alternative Investment Platforms

Oct 28 2016 | 5:52pm ET

The past several years have seen a distinct push towards easier and cheaper access...

Lifestyle

Midtown's Plaza District Fades As Manhattan Office Landscape Shifts

Nov 22 2016 | 6:32pm ET

Lower leasing costs, more efficient office space and the hope of projecting an image...

Guest Contributor

Nowhere to Hide: Why the Future of Asset Management Depends on Innovation

Nov 15 2016 | 6:55pm ET

Information technology has reshaped the asset management industry’s periphery,...

 

From the current issue of

Chicago-based independent futures brokerage and clearing firm R.J. O’Brien & Associates (RJO) has hired industry veteran Daniel Staniford as Executive Director, responsible for the firm’s institutional business development in New York and London.

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR