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Sotheby’s Names Dennis Weibling to Board

On May 23, Sotheby’s Holdings announced the election of Dennis Weibling to its board of directors. Weibling is managing director of Rally Capital LLC, a private equity fund. He also serves as a director of Nextel Partners Inc., Kirkland, Wash., according to the Sotheby’s statement.

NEW YORK—On May 23, Sotheby’s Holdings announced the election of Dennis Weibling to its board of directors. Weibling is managing director of Rally Capital LLC, a private equity fund. He also serves as a director of Nextel Partners Inc., Kirkland, Wash., according to the Sotheby’s statement.

Separately, Sotheby’s announced it has amended its long-term revolving credit agreement with Banc of America Securities and LaSalle Bank N.A. to allow for $50 million in additional commitments from the auction house’s existing lenders. This increases the total borrowing capacity under the Banc of America credit agreement from $250 million to $300 million.

Said CEO William Ruprecht: “This is a very positive step and a reaffirmation of our strong credit and balance sheet strength as well as sustained earnings growth.”

Sotheby’s stock reached a high around $34 on May 8 and has declined in recent weeks following its first quarter earnings report (ANL, 5/23/06). On June 1, analysts at Wedbush Morgan reiterated their “strong buy” recommendation of Sotheby’s stock. Wedbush raised its 2006 and 2007 earnings per-share estimates for the company from $1.25 to $1.35 and from $1.37 to $1.45, respectively. The Wedbush Morgan target price for the stock is $34. As ARTnewsletter went to press, the stock closed at $27.97, up $1.22, or 4.6 percent, in trading on the New York Stock Exchange.

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