Dan Loeb’s successful battle for Sotheby’s board seats is looking like a Pyrrhic victory — at least for now.
Loeb’s near-$300 million stake in Sotheby’s appears to be approximately $11 million in the red, following Tuesday’s closing stock price of $37.91.
That takes into account a $29.5 million dividend Sotheby’s gave investors to appease Loeb earlier this year — the sum is calculated using the amount paid for his entire stake, as filed with the Securities and Exchange Commission.
The SEC numbers, however, don’t take into account any swaps that Loeb may have bought, which sources said might actually put him in the black. Loeb declined to say what his position cost, including any swaps.
Still, shares have fallen 13 percent since Sotheby’s and Loeb reached an agreement on May 5 to allow the activist investor three board seats and the ability to buy up to 15 percent of the shares — up from the 9.6 percent he now owns.
Sotheby’s contemporary art sales last week totaled about $364.3 million.