New York, NY, United States (4E) – Daniel Loeb’s Third Point LLC announced that they own a major stake in New York-based art and collectibles auction house Sotheby’s — 5.7 percent — as the activist investor expressed his intention to enter discussions with the auctioneers’ executives.
The New York-based Third Point spent $156.7mn on the holding, according to a filing with the U.S. Securities and Exchange Commission (SEC) on Monday. The regulatory filing also shows that Loeb wants to engage in talks with Sotheby’s board and management.
Sotheby’s, led by Chairman and Chief Executive Officer William Ruprecht, welcome the investment in the company and its board and management are committed to providing long-lasting value for shareholders, according to a company representative.
The talks may involve leadership or strategy changes, the filing said. Sotheby’s generated $768.5mn in revenue in 2012, primarily from its auction business that sells gems, art and fine wines.
For the second quarter, Sotheby’s said second-quarter profit jumped 7.4 percent as a rate hiked boosted auction commissions, while masking higher spending. However, the results missed analysts’ estimates.
Activist investors usually purchase at least 5 percent of a company’s equity and disclose their holding in a 13D filing with SEC where they announce their intent to make changes to improve equity returns.