Sothebys (BID)

[eastunder]

Sotheby’s and Loeb End Fight Over Board

May 5, 2014, 9:20 am

http://dealbook.nytimes.com/2014/05/05/sothebys-and-loeb-end-fight-over-board/?partner=yahoofinance

Sotheby’s said on Monday that it has ended its fight with the hedge fund mogul Daniel S. Loeb, agreeing to add his three director nominees to its board.

The settlement represents a clear win for Mr. Loeb, the veteran activist investor who has waged a months-long fight against Sotheby’s in a bid to shake up the 270-year-old auction house.

The fight had become one of the biggest and most intense battles between a company and an activist this year, with each side hurling insults at the other.

Under the terms of their agreement, Sotheby’s will expand its board by three, to 15, to take on the activist’s full slate of nominees: Mr. Loeb himself, the restructuring expert Harry Wilson and the former investment banker Olivier Reza.


Daniel S. Loeb, the founder of Third Point.

The company will effectively push back its annual meeting, which had been scheduled for Tuesday, to sometime later in the month.

“We welcome our newest directors to the board and look forward to working with them, confident that we share the common goal of delivering the greatest value to Sotheby’s clients and shareholders,” William Ruprecht, Sotheby’s chairman and chief executive, said in a statement. “This agreement ensures that our focus is on the business and that we will benefit from five fresh voices and viewpoints.”

Mr. Loeb added, “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.”