The Art Market Monitor has published the letter from investor Mike McGuire of Marcato Capital to Sotheby’s, in which he lays out a plan for a stock dividend and increased returns. “Despite our dialogue with you and other members of the board, a substantial portion of Sotheby’s invested capital continues to earn a poor return or worse yet, earns noreturn at all,” he writes. (more…)
Russian entrepreneur, mathematician, engineer and collector, Inna Bazhenova has purchased the Art Newspaper, with the intent of helping in the development of the site’s online offering. “The quality of its journalism and scholarship are outstanding and its excellent coverage of international art news is vital in our global environment,” she said in a statement. “I want to reassure you that The Art Newspaper will retain complete editorial independence, now and for as long as I own it. My aim is to invest in it so that it may remain as good as it is today.” (more…)
Continuing its run of appointments and in-house changes, Sotheby’s has appointed Domenico De Sole as Lead Independent Director. The co-founder and Chairman of Tom Ford International, former President and CEO of Gucci Group, De Sole turned around Gucci while he was there, taking it from nearly bankrupt to a multi-billion dollar conglomerate. “We’re very excited that Domenico has joined the Board and has also agreed to serve as Lead Independent Director. He brings blue chip experience in the high-end luxury space, in Board leadership, and in strategic executive roles envisioning the future of elite brands,” said Sotheby’s Chairman, President and Chief Executive Officer William F. Ruprecht. (more…)
Following the open letter written to Sotheby’s by Daniel Loeb, the auction house has responded to its shareholders, detailing a “poison pill” strategy to ward off any attempts at a hostile takeover of the company. The plan, which initiates a dividend offer for any share of outstanding stock, is triggered if any shareholder takes over 10% of the company’s stock. “The board had to respond to the attack and it is unsurprising they took this type of stance. But observers will be much more concerned after the events of this week. They are not out of the woods yet,” said Michael Plummer, a principal at ArtVest Partners. (more…)
A recent statement by Sotheby’s Auction House head Bill Ruprecht has analysts forecasting a potential attempt at a share buy back, following the purchase of sizable share percentages by a number of activist investors. “Sotheby’s is committed to healthy two-way communication with our shareholders as we pursue our common goal of a strong, growing, competitive Sotheby’s open to new opportunities.” Ruprecht said.
Billionaire Hedge Fund Manager and prodigious Art Collector Steven A. Cohen has issued a statement clarifying the details behind the purchase of Picasso’s Le Rêve from casino owner Steve Wynn. Despite reports of the sale coming to light only recently, the deal was reportedly made last October, at the purchase price of $150 Million, when dealer William Acquavella contacted Cohen about the work’s availibility. “We were at the gallery the next morning,” Says Sandy Heller, Cohen’s art advisor. “In three minutes we had a deal.” (more…)
