Going Once, Going Twice . . . Third Point Takes Major Stake In Sotheby’s


Will the auctioneer become the next item up for auction?

Daniel Loeb’s Third Point disclosed a 5.7% stake in Sotheby’s today in an SEC filing.  There appears to be some activist intentions behind the “investment purposes” it disclosed as the purpose behind the transaction.

Third Point included stock language for a potential activist campaign:

“The Reporting Persons intend to engage in a dialogue with members of the Board or management of the Issuer or other representatives of the Issuer. The Reporting Persons may also engage in a dialogue and other communications regarding the Issuer with other stockholders of the Issuer, knowledgeable industry or market observers (including art market participants), or other persons. Any dialogue or communications with any of the foregoing persons may relate to potential changes of strategy and leadership at the Issuer and proposals that, if effected, may result in one or more of the events described in Item 4 of Schedule 13D. . . .”

At the end of July, another activist investor, Marcato Capital Management, announced a 6.6% stake and a “belief that the Shares are undervalued and are an attractive investment.

Note to Sotheby’s executives and board members.  You can expect a call soon.

Kramer as Sotheby’s as tables turned as auctioneer becomes auctionee.

This entry was posted in Activist Investor, Hedge Funds, Marcato Capital Management, Third Point and tagged , , , , , , . Bookmark the permalink.

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