Sotheby's Adopts Poison Pill As Loeb Ups Stake

Law360, New York (October 4, 2013, 10:56 AM EDT) -- Sotheby's adopted a poison pill Friday, a day after activist investor Dan Loeb disclosed he had doubled his stake to 9.3 percent of the famed auction house and called for its CEO and chairman to resign.

The company's pill caps any investor at 10 percent ownership, a relatively low threshold, but one that effectively prevents Loeb from acquiring many more shares. It would cap a passive investor — a label that no longer applies to Loeb — at 20 percent.

Poison pills are takeover defenses that...
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