Activists Funds Third Point LLC and Marcato Capital Management Pressure Sotheby’s into Big Financial Moves

February 4th, 2014
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As a result of pressure put on management by activist investors Daniel Loeb (Third Point LLC) and Mick McGuire (Marcato Capital Management), Sotheby’s announced a special dividend and share repurchase program that will return $325 million to shareholders. According to Forbes, the aggressive action by Sotheby’s triggered a rating reduction by Standard & Poor’s.

At the center of Daniel Loeb’s activism is the company’s financial management and CEO Bill Ruprecht’s excessive pay package. Marcato Capital Management’s Mick McGuire has since called for Sotheby’s management to return $1 billion to investors. Sotheby’s stock, which has been performing well over the last year, fell sharply on the news.
For Detailed Investor Profiles on these Investors, click below:
Marcato Capital Management
Third Point Management Company
Related People: Daniel Loeb; James L. Carruthers*; Munib Islam; Richard “Mick” McGuire; Robert Schwartz; Tim Lash
Related Entities: Marcato II, L.P.; Marcato International Ltd.; Marcato, L.P.; Third Point LLC; Third Point Opportunities Master Fund LP; Third Point Resources LP; Third Point Ultra Master Fund LP; Third Point Ventures
Related Article Tags: Shareholder Activists, Corporate Raiders and Proxy Battles; Featured Reports

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