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Sotheby’s Stakeholders file a lawsuit to stop BidFair’s Auction House deal

We know that the Sotheby Auction House is being purchased by BidFair. However, two of the Stakeholders in Sotheby have filed a lawsuit against BidFair in the federal court of New York. They claim that BidFair is giving “incomplete and misleading disclosures about the deal,” according to Bloomberg. This claim is against BidFair’s owner Patrick Drahi who is a collector and businessman himself.

While BidFair’s Drahi has planned to purchase Sotheby, it also means that the auction house would be taken private and they would not be liable to answer any questions from public shareholders of Sotheby. Now, the investors named Eli Goffmna and Shiva Stein from Sotheby filed this lawsuit because the brokers failed “to disclose enough information—including financial projections and valuation analysis performed by its adviser, LionTree Advisors LLC—for shareholders to vote on the deal. ”

In response to this lawsuit, Sotheby gave its statement over email to Bloomberg saying that “As the vast majority of all public company mergers over $100 million are the subject of shareholder litigation, the lawsuits filed were expected and routine. We do not expect the suits to have any impact on our targeted closing timing of the fourth quarter of this year.”

While the deal was being done with BidFair, Sotheby’s CEO Tad Smith had said that “Patrick founded and leads some of the most successful telecommunications, media and digital companies in the world. He has a long-term view and shares our brand vision for great client service and employing innovation to enhance the value of the company for clients and employees.”

Now, it is known that this will be the first time BidFair will deal in any Auction House. As the past deals from Drahi have been related to telecommunications and cable companies in Europe and the United States and he is also the founder of Altice which is a Netherlands-based telecom company