The battle between hedge fund manager Dan Loeb and auction house Sotheby’s has intensified.
Reuters reported that Loeb, who is fighting to win three board seats at Sotheby’s, said in a filing with the U.S. Securities and Exchange Commission on Monday that the auction house’s allegations against him are “false” and “misleading.” Loeb also noted in the filing that earnings per share in the 270-year-old auction house declined by 42% from 2007 to 2013 and revenues fell, while expenses increased over the same period.
According to an eVestment article, Sotheby’s published a 53-page slide deck earlier this month that denied Loeb’s claims of poor management and also retorted that the shares of companies that the hedge fund manager was on the board of in the past underperformed the market.
Loeb, whose New York-based Third Point owns a 9.53% stake in the auction house, sued Sotheby’s last month to remove a poison pill that has prevented his firm from purchasing more of the company’s shares. Prior to that, the auction house rejected Loeb’s nominees to its board claiming that the members “add no relevant expertise not already represented on the board of directors.”
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.