• 24 Oct 2013 at 3:18 PM

Dan Loeb Only One Of Two Thorns In Sotheby’s Side

Sotheby’s doesn’t just have an activist problem. It has a two-activists problem. The auction house faces one hedge fund manager— Daniel Loeb of Third Point LLC—loudly banging down the doors over its performance. Meanwhile, another hedge fund is working behind the doors to get the company to sell its physical home. That second hedge fund, Marcato Capital Management LLC, spelled out its arguments for the first time in a presentation to investors Wednesday evening. According to the presentation, reviewed by The Wall Street Journal, Marcato wants Sotheby’s to sell its New York and London properties and unlock the capital it uses in its smaller art financing and art dealing operations. The hedge fund, Sotheby’s third-largest shareholder, believes those moves could free up $1.3 billion in cash, enough to buy back nearly a third of the company’s stock…Richard “Mick” McGuire, the founder and managing member of Marcato, unveiled his thesis for boosting Sotheby’s stock price at the Excellence in Investing conference in San Francisco. [WSJ]

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Comments (5)

  1. Posted by largent80 | October 24, 2013 at 3:27 PM

    Hmm…a galleon getting boarded by two pirate ships…go on.

    – L. Tilton

  2. Posted by guest | October 24, 2013 at 3:28 PM

    who is Soethby? Sounds like the name of a porn actress

  3. Posted by Oliver | October 24, 2013 at 3:56 PM

    Hey Guys! Oliver here just checking in with DB buds!

  4. Posted by TxtSpkr | October 24, 2013 at 4:04 PM

    FOAD! HTH, HAND. kthxbye.

  5. Posted by Guest | October 24, 2013 at 7:40 PM

    Loeb and McGuire spitroasting Sotheby's? How much would a painting of that fetch?