Forbes has a long story on Dan Loeb’s critique of Sotheby’s. But the most interesting part is the response of two analysts:
“Ruprecht and his board of directors have bought themselves some time to align themselves with the other shareholders,” says Citigroup’s Oliver Chen. “The problem is that there is a variety of interests, both long-term and short-term, as well as starkly different views of the intrinsic value of the company. I don’t know who is right, but Sotheby’s should have probably been thinking about these challenges even without getting forced.” Sotheby’s declined to offer comment.
The poison pill has not deterred Third Point, which, in an official statement, called the move “a relic from the 1980s.”
“Loeb is not the kind of guy who would pick a fight unless he is confident he can win,” says Josh Black, an analyst at Activist Insight, a London-based research firm that tracks the performance and campaigns of nearly 200 activist shareholders. Black describes Loeb, who was instrumental in replacing former Yahoo CEO Scott Thompson with Marissa Mayer last year, as “a fine tuner.”
“He intends to get on Sotheby’s board with the intention of staying there for a significant period of time,” Black says.
Why Dan Loeb Is Targeting Sotheby’s (Forbes)