Seeking Alpha

Judge upholds Sotheby's poison pill

  • A Delaware judge has rejected a request from Daniel Loeb's Third Point hedge fund to place a preliminary injunction on Sotheby's (BID) poison pill, which blocks Loeb and other activist investors from holding more than 10% of the auction house's stock but lets passive shareholders own up to 20%.
  • The ruling means that Sotheby's annual meeting can take place on Tuesday as planned, when Loeb will try to obtain three board seats.
  • The verdict has wider implications for other activist investors looking to build up powerful stakes in companies. While the poison pill has long been used as a corporate defense strategy, Sotheby's is different in that it specifically targets activists.
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Comments (1)
  • al roman
    , contributor
    Comments (10182) | Send Message
    Smoke & Mirrors.
    4 May 2014, 07:03 AM Reply Like
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