Hedge fund firm Third Point is launching a proxy battle against auction house Sotheby’s in an effort to win three board seats.
Reuters reported that New York-based Third Point, which owns a 9.53% stake in Sotheby’s, is slated to nominate founder and CEO Dan Loeb, restructuring expert Harry Wilson and former investment banker Olivier Reza to the board after the auction house’s promise to return $450 million to shareholders failed to appease activist investors.
The article added that in the filing, Loeb criticized Sotheby’s for failing to make significant changes to the company, especially its decision to put in a poison pill to itself from shareholders. According Reuters, Loeb also compared Sotheby's to "an old master painting in desperate need of restoration” last year.
Loeb is not a stranger to proxy battles, as he won a huge victory against Yahoo in 2012.
Third Point manages about $14 billion in assets.