Third Point Seeks Sotheby’s Board Seats

Feb 28 2014 | 10:46am ET

Third Point has launched a proxy battle with auction house Sotheby’s, which the activist hedge fund has called “an Old Master painting in desperate need of restoration.”

The New York-based firm nominated founder Daniel Loeb and two others to Sotheby’s board. Third Point said yesterday that the company needed “new blood and fresh views” and a shakeup of its “entrenched” board.

The move comes four months after Loeb demanded a seat on the Sotheby’s board and the ouster of CEO William Ruprecht, who he accused of a “lack of leadership and strategic vision.” Third Point owns a 9.5% stake in Sotheby’s.

In addition to board representation and a new CEO, Loeb called on Sotheby’s to improve its “chronically weak operating margins” and to focus more on modern and contemporary art.

Sotheby’s, which yesterday announced a 37% increase in fourth-quarter profit, said it was disappointed by Loeb’s move.

“Third Point’s actions are particularly unfortunate given the efforts that Sotheby’s has made to reach an agreement with Mr. Loeb,” it said.

In addition to Loeb, Third Point has nominated Maeva Group CEO Harry Wilson and jewelry executive Olivier Reza.


In Depth

Steinbrugge: Top 10 Hedge Fund Industry Trends for 2017

Jan 3 2017 | 9:03pm ET

Each year, Agecroft Partners' Don Steinbrugge predicts the top hedge fund industry...

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

DarcMatter: The Top Trends in Alternative Investments for 2017

Jan 13 2017 | 8:22pm ET

The $7 trillion alternative investments industry is poised for continued growth...

 

From the current issue of

The U.S. Commodity Futures Trading Commission (CFTC) ordered The Goldman Sachs Group Inc., and Goldman, Sachs & Co. to pay a $120 million penalty for attempted manipulation and false reporting of ISDAFIX Benchmark Rates, a global benchmark for interest rate products.