A recent 13D filing from Mark McGwire’s Marcato Capital in the past week states that the hedge fund now holds stocks in three Sotheby’s funds amounting to about 9.5%, equivalent to Daniel Loeb’s Third Point, and requests that the company release previously withheld information around the company’s recent dealings.  “The redacted material goes to the very heart of the parties’ dispute in this litigation – the conduct and competence of Sotheby’s board of directors in adopting a poison pill,” Marcato states in its filing. (more…)

The New York Times continues its thorough investigations into the contemporary art and auction markets, noting struggling stock prices for Sotheby’s and mammoth Chinese auction house Poly Culture Group Corporation, and the statistical dissonances in the claims of auction houses trumpeting a new golden age for the market.  “There’s a feeling among financial analysts that the valuations of art-related companies are peaking,” says Fabian Bocart of Tutela Capital. “These valuations are based on expected volumes at auction. Very expensive items have almost no impact.” (more…)

Following the harsh dispute between investor Daniel Loeb and Sotheby’s, the election of Loeb’s team seems to have signaled a truce between his Third Point company and the embattled auction house.  Loeb and his fellow newly elected board members have announced that they stand behind current management at Sotheby’s, particularly CEO William Ruprecht, whose removal Loeb had called for several times earlier this year.  “As of today we see ourselves not as the Third Point nominees but as Sotheby’s directors, and we expect to work collaboratively with our fellow board members to enhance long-term value on behalf of all shareholders,” Loeb said in a statement. (more…)

The ongoing struggle for control at Sotheby’s has taken a new turn, with the auction house rejecting the board nominations proposed by Daniel Loeb’s Third Point LLC, and in turn naming Jessica Bibliowicz and Kevin Conroy for board seats. “The composition of your Board is something Sotheby’s takes very seriously, as the experience and expertise of its directors have been and will continue to be important to enabling the Company’s success,” the company said in an open letter to shareholders. (more…)

China Poly Group Corporation, the state-run mega-conglomerate has announced that its cultural division will seek an Initial Public Offering this year, anticipated to raise up to $330 million for the company.  China Poly is a major player in the Chinese auction market, pitted against Sotheby’s and Christie’s, but seems to have set its sights internationally.   “We are very big in the art auction market in mainland China but still have a long way to go to become the biggest auction house worldwide,” said China Poly chief executive, Jiang Yingchun. (more…)

Another activist investor is making waves at Sotheby’s.  Richard McGuire, the head of Marcato Capital Management LLC (currently the third-ranking stockholder at the company) is apparently engaged in behind the scenes talks to convince the auction house to sell off its New York and London locations, while unlocking money from its smaller dealings in art finance and dealing.  Some have anticipated such a move could free up to $1.3 billion in cash, enough to buy back nearly a third of the company’s stock.  “Sotheby’s is committed to healthy two-way communication with its investors and welcomes thoughtful suggestions as we pursue our common goal of a strong, growing, competitive Sotheby’s open to new opportunities,” said company spokesman Andrew Gully. (more…)

The Wall Street Journal reports on the current state of Sotheby’s auction house going into the fall art season, detailing the company’s increasing stock price despite sales that have been less than exemplary.  With a series of high-profile investors now on board, including the recent addition of Daniel Loeb’s Third Point, Sotheby’s has a number of options standing before it to increase its value for shareholders. (more…)