Daniel Loeb wants the hammer to come down on Sotheby’s CEO.
The activist investor, in a letter Wednesday to William Ruprecht, said he already had two internal candidates in mind “who warrant serious consideration” to take over the corner office.
Loeb said his Third Point hedge fund has also increased its stake in the company to 9.3 percent, that he will seek a board seat, and he tore apart Sotheby’s international operation as weakening versus rival Christie’s.
Yes, it appears the truce between Loeb and the auction house, reached last month, is over.
The 51-year-old investor continued to rip into the CEO, saying, “you do not fully grasp the central importance of Contemporary and Modern Art to the company’s growth strategy.”
In fact, Sotheby’s had not even “developed a coherent plan for an Internet sales strategy, much less implement one,” said Loeb in the letter, which was tucked into a regulatory filing Wednesday.
Loeb didn’t pass up an opportunity to hit Ruprecht on his “imperial” $6.3 million annual pay package.
Sotheby’s, in a written statement said it had produced a share price increase exceeding the Standard & Poor’s Midcap index over the one, five and 10-year periods. It said it was not interested in “debating incendiary and baseless comments.”
Loeb took a first run at Sotheby’s in August. Last month, the auction house said it would review its operations — and that it would replace its CFO.
The company’s shares are up 61 percent over the past year and on Wednesday rose 0.7 percent to $50.04 after hitting a new 52-week high.