Quotes: MENA   Enter Symbol: NewsLetter: Search: advanced

Pressed by hedge funds, Sotheby’s sets $450 mn payout  Join our daily free Newsletter

MENAFN - Arab News - 08/02/2014
No. of Ratings : 0
Add to Mixx!

(MENAFN -Arab News) NEW YORK: Venerable art auctioneer Sotheby’s bowed to pressure from activist shareholders Wednesday, announcing a 300 million special dividend, a restructuring of operations and possible property sales.Three months after its management and strategy came under assault by hedge fund Third Point’s founder Dan Loeb and other activists, Sotheby’s said it will also spend 150 million on a share buyback program beginning this year.And it pledged to return excess capital to shareholders each year,“primarily through a special dividend.”“The message we are delivering is clear — we are returning meaningful capital to our shareholders now and in the future and establishing a framework that puts Sotheby’s in the strongest position to compete and win in this marketplace while delivering value to our clients,” said chief executive Bill Ruprecht.In October Loeb, holding 9.3 percent of the 270 year old auction house, singled out Ruprecht for strong criticism, saying the company was falling behind rival Christie’s.He also accused the cozy management of profligate spending.“Sotheby’s is like an old master painting i desperate need of restoration,” Loeb said, calling for Ruprecht’s removal.Sotheby’s responded with a poison pill move that would have hurt Loeb if he tried to gain further power over the company.But the company on Wednesday appeared to meet some of the demands for better focus on stockholder returns from Loeb and others.They also include a review of Sotheby’s headquarters on the east side of Manhattan and its Bond Street, London property with an eye toward selling all or parts of the buildings.The company will split its business into two separately operated divisions, one for its art auctions and private sales, and the other for financial services, which lends money against art as collateral.The new structure will optimize funding and see clear goals for returns from each business.Unde the new structure it estimates it will cut 22 million in professional fees and administrative costs. No job cuts are planned.Sotheby’s is also interested in upping investment on promising or new ventures, such as private sales, emerging markets and its digital platform.Sotheby’s shares rose 0.5 percent to 49.16 in early trade.


Arab News

  MENA News Headlines
 Nov 28 2015 - Turkey revised military engagement rules in 2012The Journal Of Turkish Weekly
(MENAFN - The Journal Of Turkish Weekly) Turkey's rules of engagement were changed long before Tuesday’s downing of Russian aircraft when on June 22 2012Syria shot down an unarmed Turkish ...

 Nov 28 2015 - Turkey- Arrest of Turkish journalists over Syria trucks news sparks outrageThe Journal Of Turkish Weekly
(MENAFN - The Journal Of Turkish Weekly) Domestic and international press institutions and political figures have condemned the Nov. 26 arrest of daily Cumhuriyet editor-in-chief Can Dündar ...

 Nov 28 2015 - In New York a warmer reception for Syrian refugeesThe Journal Of Turkish Weekly
(MENAFN - The Journal Of Turkish Weekly) In the wake of the terror attacks in Paris politicians and others are calling for a ban — or at least a delay — on the influx of refugees to the ...

 Nov 28 2015 - IS attacks raise odds of closer international cooperationThe Journal Of Turkish Weekly
(MENAFN - The Journal Of Turkish Weekly) A new wave of Islamic State (IS) group terror attacks has exposed the vulnerability of countries across Europe and the Middle East forcing governments to ...

 Nov 28 2015 - UAE's international sphere inks contract with LiechtensteinMENAFN
(MENAFN) UAE based investment firm signed a business contract with the Liechtenstein Foundation for State Governance.Moreover; global sphere will organize the important approvals from African ...

 Nov 28 2015 - Saudi's National Trans and Despatch Co. gets USD 4.5mn for power projectMENAFN
(MENAFN) National Transmission and Despatch Co. Limited (NTDCL) and United Bank Limited signed a finance facility of USD 4.5mn for building a 270km transmission line.Furthermore; this investment ...

 Nov 28 2015 - Qatar fund plan gives optimism for the blindMENAFN
(MENAFN) Qatar fund plan is giving hope for millions of children suffering from blind issues, the donation worth USD 8mn.Furthermore, the joint "Qatar Creating Vision" plan will fund surgical ...

 Nov 28 2015 - Saudi- Schools to improve science educationArab News
(MENAFN - Arab News) JEDDAH: The Ministry of Education and King Abdulaziz City for Science and Technology (KACST) have signed several agreements to boost science and technology teaching at schools. ...

 Nov 28 2015 - MCI judged best e govt department in GCCArab News
(MENAFN - Arab News) RIYADH: The Ministry of Commerce and Industry (MCI) won the award for providing the Best E-Government Service among Gulf Cooperation Council countries. The award 'Best ...

 Nov 28 2015 - Saudi- Al Qaeda supporter gets 19 yearsArab News
(MENAFN - Arab News) JEDDAH: A special court has sentenced a Syrian national to 19 years in jail for supporting Al-Qaeda and other terror-related activities. The sentence includes three years for ...




Click to Apply


Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  

Middle East North Africa - Financial Network

Main News
News By Industry
News By Country

Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices


Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks

Saudi Arabia 

Economic Calendar
Financial Glossary

Financial Calculators

RSS Feeds [XML]

Corporate Monitor


Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters

© 2014 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help