Pouring A Little Cold Water on Loeb’s “Incendiary” Rhetoric

Sotheby’s hasn’t been doing a great job of articulating its side of the story in its fight with Daniel Loeb. But Katya Kazakina picks up the cudgel for them with these observations:

Asher Edelman, a New York art dealer and former corporate raider, said Loeb’s critique is “all rhetoric. He is interested in making a profit in what is now an overpriced stock.”

Roosevelt Investment Group Inc. was one of Sotheby’s shareholders in 2011, with as much as 1.5 million shares, but has since sold its holdings. Roosevelt portfolio manager Jason Benowitz said Sotheby’s isn’t troubled enough to warrant the ousting of its CEO.

“The stock has performed well. They are cutting expenses and investing in the company’s growth,” Benowitz said. “Could they run a leaner operation? Yes they could.”

The shares are up 51 percent this year, although they remain below their closing high, set in 2007.

Sotheby’s CEO in Hot Seat For Driver, Country Club Perks (Bloomberg)