Redline has given Artnet a 30 day takeover ultimatum at €6.40 per share predicated on two conditions. Specifically, Redline will agree to a takeover purchase of artnet if it is able to acquire at least 56% of shares and artnet voids the Articles of Association requiring a 76% agreement for major changes.
Redline's takeover offer expires on 9/28/12, and in the event it is not accepted, Redline asserts that “artnet faces high legal risks".
Artnet AG would certainly benefit from an infusion of cash from Redline. In fact, an analysis of artnet auctions through 6/30/12, indicates the company's online auctions totaled only $1.8 million with an average sale price of only $1,844 per lot.
Furthermore, since artnet relauched its online artnet Auctions 4 years ago, the company has seen a severe erosion to the number of its member galleries, which once totalled 2,200. A link on the site now shows 1,670 member galleries, representing a loss of 530 member galleries, resulting in an estimated loss of $2 million in gross revenue.
Via Joseph K. Levene