Sotheby's May Get Competing Offers to Drahi Deal, NYPost Reports
Sotheby's May Get Competing Offers to Drahi Deal, NYPost Reports
(Bloomberg) -- Sotheby’s shares gained after the New York Post reported that the auction house could get competing offers days after striking an agreement with billionaire Patrick Drahi to sell itself for $2.7 billion.
A group of wealthy New York-based art “afficianados” is forming to assemble a bid, the newspaper reported Friday, citing sources “close to the talks” that it didn’t identify. Hedge fund manager Alexander Klabin of Senator Investment Group is among those who have been approached to finance a competing offer, the paper said. Sotheby’s shares rose 4.2% to $58.92 in New York.
Sotheby’s and Klabin declined to comment.
Taikang Asset Management, Sotheby’s largest shareholder with a 17% stake, is also considering whether to make a higher offer, the newspaper said. Under the agreement with Drahi announced on Monday, investors will receive $57 in cash per share of Sotheby’s common stock. The offer represented a 61% premium to its prior closing price.
Drahi would get a termination fee of more than $100 million if Sotheby’s accepted a higher bid, according to a regulatory filing.
To contact the reporter on this story: Katya Kazakina in New York at kkazakina@bloomberg.net
To contact the editors responsible for this story: Pierre Paulden at ppaulden@bloomberg.net, Steven Crabill
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