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…)

Following Daniel Loeb’s defeat in court last week, Sotheby’s and his company Third Point LLC  seem to have reached an agreement, with the auction house agreeing to add his three nominees to an expanded, 15-person board of directors, while allowing him a 15%  stake in the company.  “This agreement ensures that our focus is on the business and that we will benefit from five fresh voices and viewpoints,” says Sotheby’s head Bill Ruprecht. (more…)

Another letter from Third Point’s Daniel Loeb attacks Sotheby’s for failing to acknowledge the strength of his choices for board seats at the auction house.  “We are convinced that having an owner’s perspective in the boardroom yields better results, that this board is in dire need of fresh insights, and that our candidates are more qualified than the company’s emissaries we are seeking to replace,” Loeb writes. (more…)

In a recent investor presentation, Daniel Loeb outlined his five point plan for bringing Sotheby’s back to profitability, pushing his case for allowing Third Point a more vocal position in the company’s proceedings.  Loeb’s plan includes action points on curated auctions and private sales, attacks on the company’s planning on its S|2 Gallery, and inquiries into how to utilize the auction spaces during downtime.   (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…)