Daniel Loeb's Third Point LLC unveiled a major stake in
Sotheby's (BID), as the activist investor said it intends to engage
in a dialogue with members of the auctioneer's board and
management.
Sotheby's shares rose 4.5% to $47.88 in recent trading Monday as
Third Point disclosed a 5.7% stake in the auctioneer in a
filing.
A representative for Sotheby's wasn't immediately available to
comment.
Sotheby's has seen its bottom line alternate between profits and
losses in recent years, though revenue has improved in recent
periods. It has said its second and fourth quarters are generally
stronger than its first and third, due to the seasonality of the
art-auction market.
The company has been exploring options for its headquarters on
York Avenue in New York, although it has no current plans to
relocate the operations. The company also has said it is planning
to assess the value of its premises on New Bond Street in
London.
Earlier this month, Sotheby's reported its second-quarter profit
rose 7.4% as a rate increase helped boost auction commissions,
while masking increased expenses. However, results were below
analysts" expectations.
The stock has risen 42% since the start of the year.
Write to Anna Prior at anna.prior@wsj.com
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