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Sotheby's stock bid down
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February 22, 2000: 1:01 p.m. ET
Auction house shares succumb to pressure from DOJ probe, lawsuits
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NEW YORK (CNNfn) - Investors hammered shares of Sotheby's Holdings Inc. down nearly 15 percent Tuesday, one day after the company's top two executives resigned amid speculation about the company's involvement in possible antitrust violations.
Shares of the famous New York auction house fell 2-1/2 to 15-1/4 in early afternoon trading, well below the company's 52-week low of 17-1/2.
Sotheby's Chairman A. Alfred Taubman resigned Monday amid growing pressure from the U.S. Justice Department, which is investigating claims that the auction house conspired with its main rival, Christie's, to fix commission fees paid to sellers beginning in 1995.
Diana Brooks, Sotheby's president and chief executive officer, also stepped down. The European Union, the British Office of Fair Trading and the Australian Competition Commission all have opened inquiries into alleged price-fixing of commissions.
Credit rating company Standard & Poor's Tuesday cut its credit, senior unsecured and bank loan ratings for Sotheby's (BID: Research, Estimates) to a triple 'B' from a single 'A.' All the company's ratings also were placed on credit watch with negative implications.
An S&P analyst said the downgrade was due to the recent Department of Justice probe and lawsuits, which could have a material effect on the company's financial performance. 
-- from staff and wire reports
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Sotheby's
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