Sotheby’s names Linus Cheung first director from Asia

Sotheby’s elected Chinese businessman and art collector Linus Cheung as its first director from Asia, working with its largest shareholder to add expertise in a key market.

The New York-based auctioneer of fine art and collectibles announced the move along with a wider third-quarter loss as sales declined in a contracting market, according to separate statements Monday.

The company’s net loss grew to US$54.5 million, or 99 cents a share, from $17.9 million, or 26 cents, a year ago. Excluding certain items, the adjusted loss was 78 cents a share, compared with an expected 57 cents, the average of three analysts in a Bloomberg survey.

Sotheby’s, whose shares gained 34 per cent this year through last week, is seeking to make a turnaround under Chief Executive Officer Tad Smith. The acquisition of private firm Art Agency Partners in January for as much as $85 million prompted departures by several top dealmakers just as the art market’s contraction accelerated. The company has made progress more recently, winning the $100 million collection of Ann and Steven Ames for this month’s marquee auctions in New York.

Cheung is the retired CEO of Hong Kong Telecom and a prominent collector of Chinese art, Sotheby’s said in a separate statement. He served on the boards of companies including Cathay Pacific Airways Ltd., Hong Kong Telecom and Taikang Insurance Group.

Taikang became Sotheby’s largest holder in July, with 14 per cent of the shares.

The Chinese insurer’s chairman and CEO, Chen Dongsheng, is also the founder and president of China Guardian Auctions Co., one of the country’s biggest auction houses.