Sotheby's Reports Review of Capital Allocation, Financial Policies, Says Could Assess Value of Real Estate

Sotheby's

today announced that the Board of Directors is conducting a thorough review of its capital allocation and financial policies as part of the Company's ongoing commitment to deliver exceptional shareholder value. The results are expected to be presented to investors in early 2014. During the past several years, Sotheby's prudent management and strong financial performance has generated meaningful capital, which the Company has used to invest in strategic initiatives, strengthen the balance sheet, and build adequate liquidity to pursue transaction opportunities such as lending and auction guarantees. This strong performance and stewardship has also driven a share price increase exceeding the Standard & Poor's Midcap index over the one, five and ten year periods. A robust capital allocation review is the natural next step of the Company's ongoing efforts to optimize the balance sheet, improve the cost of capital and manage financial policies in a way that supports Sotheby's strategy and delivers outstanding value to shareholders.