Sotheby's adopts 'poison pill' after Dan Loeb raises stake

Friday, 4 Oct 2013 | 9:06 AM ET
Sotheby's adopts poison pill to fend off activist
Friday, 4 Oct 2013 | 9:04 AM ET
Sotheby's, the big auction house, has adopted a poison pill after activist investor Dan Loeb called for changes in how the company is run.

Sotheby's adopted a "poison pill" to ward off an unwanted takeover, two days after activist investor Daniel Loeb's Third Point announced that it raised its stake in the auctioneer and called for its chief executive, William Ruprecht, to step down.

The company said the shareholder rights plan would be triggered if a person or group acquired 10 percent or more of its shares.

Third Point has raised its stake to 9.3 percent, making it Sotheby's largest shareholder.

Dan Kitwood | Getty Images

"Sotheby's is like an old master painting in desperate need of restoration," Mr. Loeb wrote in a filing with the U.S. Securities and exchange Commission.

"Poison pills" are designed to dilute holdings of an investor should its stake exceed a given threshold.

By Reuters

  Price   Change %Change


Contact Wall Street


    Get the best of CNBC in your inbox

    › Learn More