Sotheby's said Wednesday it will pay shareholders a $300 million
special dividend in March, and may sell its New York headquarters,
as the auction house works to fend off an assault by activist hedge
fund manager Daniel Loeb.
The company also said it may buy back $150 million in stock and
is considering options for its Bond Street property in London.
The moves are the result of a financial review that began in
September, a month before Mr. Loeb sent the company an incendiary
public letter calling on Chief Executive William Ruprecht to step
down and saying the company was like "an old master painting in
desperate need of restoration."
But the promises to return more cash to shareholders could help
build support for management in that fight.
Mr. Loeb's Third Point Capital LLC has a 9.3% stake in
Sotheby's.
The art auction house said it hopes to extend an annual special
dividend in the years ahead.
Write to Sara Germano at sara.germano@wsj.com
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