It means war for hedge fund manager Dan Loeb and auction house Sotheby’s.
The New York Times reported that Loeb, whose New York-based Third owns a 9.53% stake in Sotheby’s, has sued the auction house to remove a poison pill that has prevented his firm from purchasing more of the company’s shares.
Loeb called the poison pill an “improper attempt by the directors of Sotheby’s to entrench themselves in office and to hinder Third Point’s or any other stockholder’s ability to run an effective proxy contest.”
Sotheby’s told the Times through an e-mailed statement that it “intends to review Third Point’s complaint regarding the rights plan” once it has been served with the papers.
Sotheby’s rejected Third Point’s three nominees to its board—citing that they “add no relevant expertise not already represented on the board of directors”--earlier this month after Loeb criticized the company of failing to make significant changes to the company.
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.