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Sotheby's, Third Point are set for battle royal over poison pill

Apr 16, 2014 - The Deal Pipeline

A showdown is coming up in Delaware between Daniel Loeb's activist fund Third Point LLC and Sotheby's over a poison pill enacted by the auction house.

In a lawsuit in Delaware Court of Chancery, Third Point is challenging the pill as a way to keep the activist's slate of three director nominees off the board.

The company enacted the poison pill shortly after Third Point revealed a 5.7% stake in August. While courts uphold poison pills that are reasonably limited in their scope, l...