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Report: Activist Demands Sothebys Boot CFO, Buy Back Shares

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Sothebys (NYSE: BID) spiked on a report that a 9.5 percent stakeholder is pushing for a stock buyback and the replacement of the company's chief financial officer.

The art auction house changed hands recently at $44.48, up 1 percent. Earlier, it traded as high as $44.88.

CNBC reported Friday that activist investor Mick McGuire's Marcato Capital wants Sothebys to immediately buy back $500 million shares and replace Chief Financial Officer Patrick S. McClymont, named to the role a little more than a year ago.

McGuire most recently made news earlier this month, urging Southfield, Michigan-based Lear Corp. (NYSE: LEA) to break its automobile seating and electrical systems segments into two separate businesses.

Activist Dan Loeb in May gained three seats on Sothebys board and wrested an agreement to remove the company's poison pill plan.

CNBC said McGuire c.c.'d Loeb on his Sothebys letter.

Separately Friday, Sothebys said it acquired a 25 percent stake in high-end automobile auctioneer RM Auctions. Sothebys said it will will have opportunities to increase the ownership stake in RM.

 

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Posted-In: CNBC Dan Loeb Marcato Capital Mick McGuireNews Rumors Buybacks Management

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