Third Point nominating 3 for Sotheby's board

NEW YORK (AP) -- Third Point LLC is nominating three people for Sotheby's board, including its founder and CEO Daniel Loeb.

The hedge fund is the auction house's biggest shareholder with a 9.2 percent stake.

Third Point said in a regulatory filing on Thursday that it is suggesting its own nominees because current board members "lack the fresh perspective necessary to overhaul the company's challenged operational structure and cure its cultural malaise."

Third Point and hedge fund Marcato Capital Management LP have been pressing for changes at the auction house.

Sotheby's said that it is disappointed that Third Point chose to launch a proxy battle over the board's makeup and said it is confident the company is on the right track.

The company reported Thursday that its fourth-quarter net income jumped 37 percent on improved auction sales. It earned $90.8 million, or $1.30 per share, for the quarter, up from $66.1 million, or 97 cents per share, in the prior year. Two analysts expected $1.51 per share, on average. Revenue increased nearly 17 percent to $339.2 million, just shy of analyst expectations of $358.1 million, according to FactSet.

Sotheby's said that its efforts to improve competitiveness and its leadership put the company in the best position for growth. The company also noted Thursday that it had previously offered Loeb a spot on the board and has had several meetings with Third Point to discuss its concerns and company strategy.

Last month, Sotheby's announced that it was separating its agency and financial services divisions. It also said that it planned to evaluate its real estate holdings in New York and London over the next year or two and was considering options for its New York headquarters.

Sotheby's stock shed 14 cents to close at $50.37.