Sotheby's and Daniel S. Loeb, the activist hedge fund manager, declared a truce in one of the most bitter corporate fights in recent memory, the New York Times reports.
After a long proxy battle, the auction house agreed to give Loeb and two allies the board seats they had been seeking and to allow his firm, Third Point, to increase its stake to 15%.
Officials at Christie's, Sotheby's archrival, are said to have used Sotheby's troubles in the competition to win art to sell this season. If they did, it worked, the Times said.
On Tuesday, Christie's held contemporary art auctions topped expectations, selling nearly $745 million worth in less than three hours on Tuesday alone.
But despite having eight more works than the Christie's auction this week, Sotheby's sale on Wednesday only managed less than half as much in sales on Tuesday, totaling $364.3 million, just above its low $336.7 million estimate, according to the Times.
TheStreet Ratings team rates SOTHEBY'S as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate SOTHEBY'S (BID) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, increase in stock price during the past year and impressive record of earnings per share growth. However, as a counter to these strengths, we find that we feel that the company's cash flow from its operations has been weak overall."