Tags: 80's, Dan Loeb, poison pills, Sotheby's, Third Point
In response to the auction house’s adoption of a ‘poison pill,’ in response to this, the hedge fund issued the following statement:
FOR IMMEDIATE RELEASE
THIRD POINT ADDRESSES SOTHEBY’S (NYSE: BID) ADOPTION OF A POISON PILL – A RELIC FROM THE 1980’s
NEW YORK, NEW YORK, OCTOBER 4, 2013 – Third Point is disappointed that Sotheby’s Board of Directors has trotted out the poison pill – a relic from the 1980’s – as its disproportionate response to the valid concerns expressed in our October 2nd letter. Rather than address our well-documented citations of mismanagement and initiate a constructive dialogue with its largest shareholder, the Board and the CEO have attempted to further entrench themselves.
Third Point’s involvement does not pose a threat to either the Company or our fellow shareholders, all of whom will benefit from our considerable efforts. It is clear that today, the Chief Executive Officer and his hand-picked directors have put their job security ahead of shareholders.
Given their personal interests and miniscule shareholdings of Sotheby’s, the Board’s actions – disenfranchising its owners who may wish to acquire a more significant stake – come as no surprise. We hope this will be the Ruprecht Board’s final snub to its shareholders. It would be unfortunate if they instead refuse to undertake a fresh start until one is imposed upon them during proxy season.