Bloomberg | 1 Mar, 2014, 12.40PM IST
In a Sotheby's auction in November, a New York diamond cutter defeated three bidders to win the most expensive gemstone ever. On Thursday, the auction house said the buyer couldn't pay.
The 59.6 carat oval-cut pink diamond , which fetched $83.2 million in a transaction guaranteed by Sotheby's , was acquired by the auction house after the buyer defaulted. The stone is recorded in Sotheby's inventory at about $72 million, the US dollar equivalent of the corresponding purchase price in Swiss francs, Sotheby's said.
"We are currently in discussions with the buyer while also considering other alternatives," Patrick McClymont, Sotheby's chief financial officer, said. "In the meantime, we are comfortable with our valuation and see real value in owning the diamond at this price."
The November 13 sale was seen as a sign of market buoyancy and a highprofile success for Sotheby's , which has faced pressure from investors, including hedge-fund billionaireDan Loeb, to become more competitive.
Loeb, on Thursday, indicated he may engage in a proxy contest after New York-based Sotheby's didn't accept his proposal to add three directors backed by Third Point to the company's board.
Third Point, the largest shareholder of Sotheby's with a 9.5% stake as of February 26, proposed the company add Loeb; Harry Wilson, who helped restructure General MotorsCo; and jewelry designer Olivier Reza to the board, according to a filing with the US SEC.
The 59.6 carat oval-cut pink diamond , which fetched $83.2 million in a transaction guaranteed by Sotheby's , was acquired by the auction house after the buyer defaulted. The stone is recorded in Sotheby's inventory at about $72 million, the US dollar equivalent of the corresponding purchase price in Swiss francs, Sotheby's said.
"We are currently in discussions with the buyer while also considering other alternatives," Patrick McClymont, Sotheby's chief financial officer, said. "In the meantime, we are comfortable with our valuation and see real value in owning the diamond at this price."
The November 13 sale was seen as a sign of market buoyancy and a highprofile success for Sotheby's , which has faced pressure from investors, including hedge-fund billionaireDan Loeb, to become more competitive.
Loeb, on Thursday, indicated he may engage in a proxy contest after New York-based Sotheby's didn't accept his proposal to add three directors backed by Third Point to the company's board.
Third Point, the largest shareholder of Sotheby's with a 9.5% stake as of February 26, proposed the company add Loeb; Harry Wilson, who helped restructure General MotorsCo; and jewelry designer Olivier Reza to the board, according to a filing with the US SEC.
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