Sotheby's reaches truce with Dan Loeb

The company has agreed to welcome Mr Loeb and two other candidates, Olivier Reza and Harry Wilson, to its board. However, it will do so by expanding the number of seats, rather than ousting any of its existing directors.

Third Point, Mr Loeb’s hedge fund, told Sotheby’s shareholders that the auction house had “languished” under chief executive William Ruprecht, and was like “an old master painting in desperate need of restoration”.

It also launched a blistering verbal attack in return, shredding Mr Loeb’s track record as a director, and claiming that he brought “no relevant skills, experience or expertise” to the table.

It also accused the hedge fund manager of “greenmailing” companies into doing what will suit him, rather than what will suit most shareholders.

The New Yorker has certainly profited handsomely from previous corporate battles. He was one of the main agitators for change at Yahoo!, the internet company, and carved a place for himself on the board. He resigned a year later, netting $520m from the sale of his shares.

However, Mr Loeb said yesterday that he was one of Sotheby’s directors, rather than one of Third Point’s nominees.

“We expect to work collaboratively with our fellow board members to enhance long-term value on behalf of all shareholders," he said in a statement, which was issued jointly with Sotheby’s.

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