Sotheby’s to bring back overseas earnings

Listen to this article

00:00
00:00

The New York auction house Sotheby’s has scrapped its dividend and announced plans to bring overseas earnings back into the US.

Both moves are designed to help fund a share buyback programme, which the company increased in size by $200m. The auction house has been under pressure from activist investors to return more cash to shareholders and buoy earnings.

The decision to bring back $381m of accumulated overseas earnings to the US left Sotheby’s with a charge of up to $68m, which will help push the auction house to a loss of between $10m and $19m in the final quarter of last year, the company said in a filing with the Securities and Exchange Commission.

Copyright The Financial Times Limited 2017. All rights reserved. You may share using our article tools. Please don't copy articles from FT.com and redistribute by email or post to the web.