Publications
Publications
- November 2017
- HBS Case Collection
Third Point Paints a Target on Sotheby's
By: Lena G. Goldberg
Abstract
When faced with the increasing accumulation of its stock by activist investors led by Daniel Loeb’s Third Point LLC and the activists’ stated objective to replace management and at least some Sotheby’s Board members, Sotheby’s, the world’s oldest auction house, responded with the adoption of a rights plan, also known as a poison pill. Third Point then sued seeking to overturn the plan. The case presents excerpts from the Delaware Chancery Court’s opinion on Third Point’s motion to enjoin Sotheby’s shareholder meeting until the viability of the rights plan could be determined.
Keywords
Fiduciary Duties; Activists; Activist Investors; Rights Plan; Poison Pills; Takeover Defenses; Corporate Governance; Laws and Statutes; Lawsuits and Litigation; Ownership Stake; Value Creation; Crisis Management
Citation
Goldberg, Lena G. "Third Point Paints a Target on Sotheby's." Harvard Business School Case 318-086, November 2017.