Art Market Monitor

Global Coverage ~ Unique Analysis

  • AMMpro
  • AMM Fantasy Collecting Game
  • Podcast
  • Contact Us

Delaware Court Willing to Hear Loeb’s Poison Pill Suit Against Sotheby’s

April 1, 2014 by Marion Maneker

dan-loeb-takes-a-new-stake-in-dow-chemical-and-its-now-third-points-largest-positon

Daniel Loeb gain a slight bit of potential leverage in his fight over Sotheby’s board. The Delaware Chancery court will fast-track his suit to negate Sotheby’s poison pill:

Vice Chancellor Donald Parsons seemed sympathetic to the argument that the pill — which caps Mr. Loeb’s investment at just under 10% while other, passive, shareholders can own twice that — is unfair.

“Here we have an uncommon rights plan that on its face discriminates between activist and passive investors,” Mr. Parsons said in the telephonic hearing. “It is sufficiently possible that the board is attempting to tilt the playing field for proxy contest in its favor and make for an unfair fight.”

But Mr. Parsons said Mr. Loeb, whose hedge fund Third Point LLC owns 9.6% of Sotheby’s, faces “an uphill battle” to show the pill actually puts him at a disadvantage. Third Point owns about 10 times as much stock as Sotheby’s directors and executives he is fighting, Mr. Parsons noted.

Loeb’s Campaign Against Sotheby’s Gets Boost From Delaware Judge (MoneyBeat/ WSJ)

More from Art Market Monitor

  • Christie's London Contemporary: LichtensteinChristie's London Contemporary: Lichtenstein
  • Diagnosing Dr. NoDiagnosing Dr. No
  • Two Ways of Seeing Oliver Stone's HK Art SaleTwo Ways of Seeing Oliver Stone's HK Art Sale
  • Yan Pei-Ming's Life in FranceYan Pei-Ming's Life in France
  • Vernissage TV: Lisa Kirk's Shanty TimeshareVernissage TV: Lisa Kirk's Shanty Timeshare
  • France & Netherlands Jointly Acquire Rothschild Rembrandts, Pair Will Be Shown TogetherFrance & Netherlands Jointly Acquire Rothschild Rembrandts, Pair Will Be Shown Together

Filed Under: General

About Marion Maneker

LiveArt

Want to get Art Market Monitor‘s posts sent to you in our email? Sign up below by clicking on the Subscribe button.

  • About Us/ Contact
  • Podcast
  • AMMpro
  • Newsletter
  • FAQ

twitterfacebooksoundcloud
Privacy Policy
Terms & Conditions
California Privacy Rights
Do Not Sell My Personal Information
Advertise on Art Market Monitor
 

Loading Comments...