On October 3, 2016, Sotheby's (the "Company") entered into a Share Repurchase Agreement (the “Share Repurchase Agreement”) with funds managed by Marcato Capital Management LP (the “Sellers”), pursuant to which the Company agreed to purchase 2,050,000 shares of common stock, par value $0.01 per share, of the Company (“Common Stock”) from the Sellers (the “Repurchase Transaction”) for an aggregate purchase price of $73,800,000. The Company’s payments under the Share Repurchase Agreement were funded with cash on hand.What does this all mean? Although Marcato has sold a large portion of its stake (3.8% of the total shares) it retains 4.9% ownership as well as its seat on the board. While this changes little in the day-to-day for Sotheby's, it may be an important milestone in the activist story to transform Sotheby's which we explain for subscribers below:
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