Sotheby's to be taken private by Altice founder in $3.7bn deal

Sotheby's has agreed to be bought by BidFair USA, a company owned by Altice founder and art collector Patrick Drahi, for $3.7bn.

The transaction has been approved by Sotheby’s board of directors and shareholders, including employee shareholders.

Under the terms of the deal - which will see the auction house return to private ownership after 31 years a public company - Sotheby's will receive $57 per share in cash. This is a 61% premium to the closing stock price on Friday.

Sotheby's chief executive officer Tad Smith said: "Known for his commitment to innovation and ingenuity, 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.

"This acquisition will provide Sotheby’s with the opportunity to accelerate the successful program of growth initiatives of the past several years in a more flexible private environment. It positions us very well for our future and I strongly believe that the company will be in excellent hands for decades to come with Patrick as our owner."

The deal is expected to close in the fourth quarter of this year following shareholder approval.

At 1455 BST, the shares were up 57% to $55.64.