|The First Art Newspaper on the Net
||Established in 1996
|| Friday, February 23, 2018
|Pressed by hedge funds, Sotheby's sets $450 million payout; Possible property sales|
Sotheby's employees stand with a newly-discovered painting by Cy Twombly during the Sotheby's Impressionist, Modern & Contemporary Art auctions press preview in London on January 29, 2014. AFP PHOTO/ANDREW COWIE.
NEW YORK, NY (AFP).- Venerable art auctioneer Sotheby's bowed to pressure from activist shareholders Wednesday, announcing a $300 million special dividend, a restructuring of operations and possible property sales.
Three months after its management and strategy came under assault by hedge fund Third Point's founder Dan Loeb and other activists, Sotheby's said it will also spend $150 million on a share buyback program beginning this year.
And it pledged to return excess capital to shareholders each year,"primarily through a special dividend."
"The message we are delivering is clear - we are returning meaningful capital to our shareholders now and in the future and establishing a framework that puts Sotheby's in the strongest position to compete and win in this marketplace while delivering value to our clients," said chief executive Bill Ruprecht.
In October Loeb, holding 9.3 percent of the 270 year old auction house, singled out Ruprecht for strong criticism, saying the company was falling behind rival Christie's.
He also accused the cozy management of profligate spending.
"Sotheby's is like an old master painting in desperate need of restoration," Loeb said, calling for Ruprecht's removal.
Sotheby's responded with a poison pill move that would have hurt Loeb if he tried to gain further power over the company.
But the company on Wednesday appeared to meet some of the demands for better focus on stockholder returns from Loeb and others.
They also include a review of Sotheby's headquarters on the east side of Manhattan and its Bond Street, London property with an eye towards selling all or parts of the buildings.
The company will split its business into two separately operated divisions, one for its art auctions and private sales, and the other for financial services, which lends money against art as collateral.
The new structure will optimize funding and see clear goals for returns from each business.
Unde the new structure it estimates it will cut $22 million in professional fees and administrative costs. No job cuts are planned.
Sotheby's is also interested in upping investment on promising or new ventures, such as private sales, emerging markets and its digital platform.
Sotheby's shares rose 0.5 percent to $49.16 in early trade.
© 1994-2014 Agence France-Presse
January 30, 2014
Hayward Gallery in London unveils the first retrospective of British artist Martin Creed
New visual conversations with Jenness Cortez on view at DeBruyne Fine Art of Naples, Florida
Getty Museum acquires thirteen rare Pictorialist photographs from the height of the movement
Exhibition of new paintings by Lloyd Martin opens at Stephen Haller Gallery in New York
Kröller-Müller Museum in Otterlo acquires a prominent work by Giacomo Balla
Babe Ruth's 1923 World Series Championship watch, thought lost to history, surfaces for public auction
New minister of state for culture says Germany to boost efforts to return Nazi-looted art
Facilitated by judge, Detroit Institute of Arts to raise $100 million toward Detroit's revitalization
animalvegetablemineral: Exhibition of new works by Victoire de Castellane opens at Gagosian London
Pressed by hedge funds, Sotheby's sets $450 million payout; Possible property sales
The First World War Centenary: the site that brings all sides together launches in Berlin
Lars Müller Publishers releases Jurek Wajdowicz: Liminal Spaces. Fotografie _75
Rhythmic and optical paintings by Oli Sihvonen from 1988 to 1991 presented at David Richard Gallery
Queens of the Western Ocean reign at Bonhams New York
El Greco masterpiece at Nelson-Atkins to be restored as part art conservation project
Air de Paris opens exhibition of the work by Pierre Joseph
"The Rise of Paris: The Art of the Modernist Period" on view at Aidan Meller Galleries
Witchcraft, murder, slavery: Accounts of 18th century trials for sale at Bonhams
Bonniers Konsthall opens the first major solo exhibition of Andreas Eriksson's work
First-year enrollments in Friends & Partners Membership Programs soar at Dallas Museum of Art
Tin treasures bring fantastic results at Bonhams Winter Toys Auction
Oops: Galerie Rodolphe Janssen presents the work of young American artist Dylan Lynch
Most Popular Last Seven Days
1.- The Morgan explores the Medieval world's fascinating approach to the passage of time
2.- Experts discover hidden ancient Maya structures in Guatemala
3.- Egyptian archaeologists unveil tomb of Old Kingdom priestess Hetpet
4.- The Speed Art Museum and Italian Ministry reach loan agreement on ancient calyx-krater
5.- Major exhibition features artistic masterpieces from the glorious Church of the Gesù
6.- From Beowulf to Chaucer, the British Library makes 1,000 years of rich literary history freely available online
7.- Truck damages Peru's ancient Nazca lines
8.- Trish Duebber is new Coordinator of Youth Programs at Boca Raton Museum Art School
9.- Exhibition examines the way art, like language, was used to articulate a rhetoric of exclusion
10.- The Dallas Museum of Art announces gift of three major European works
Museums, Exhibits, Artists, Milestones, Digital Art, Architecture, Photography,
Photographers, Special Photos, Special Reports, Featured Stories, Auctions, Art Fairs,
Anecdotes, Art Quiz, Education, Mythology, 3D Images, Last Week, .
|Royalville Communications, Inc|
Tell a Friend
Dear User, please complete the form below in order to recommend the Artdaily newsletter to someone you know.
Please complete all fields marked *.