NEW YORK CITY-Sotheby's, which has been facing calls from one hedge fund manager to improve its performance, now has a hedge fund calling for the auction house to sell its New York and London properties.
Marcato Capital Management LLC in a presentation to investors Wednesday evening in San Francisco, revealed its request for Sotheby's to sell the properties, which it says could reap $1.3 billion, according to the Wall Street Journal. Earlier, hedge fund manager Daniel Loeb of Third Point LLC has been highly critical of Sotheby's fiscal performance.
Andrew Gully, a spokesman for the auction house, said "Sotheby's is committed to healthy two-way communication with its investors and welcomes thoughtful suggestions as we pursue our common goal of a strong, growing, competitive Sotheby's open to new opportunities."
Richard McGuire, the founder and managing member of Marcato, said an outright sale of the New York property could bring in $500 million, or the company could engage in a sale-leaseback on the building. Sotheby's London property on New Bond Street is worth $225 million, according to McGuire's presentation. See story in the Wall Street Journal.
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