Dan Loeb’s Third Point fund has just revealed the next target for its activist intervention. The firm has just reported to the Securities and Exchange Commission a 5.7 percent stake in Sothebys (NYSE:BID). In addition, Dan Loeb has basically just disclosed its intention to go activist on the company.

third point sothebys

The firm has been building its position in the company gradually. Its 13F filing earlier this month showed that Loeb had increased his stake in the auction company. Today a 13D filing from Third Point shows that the firm has amassed almost 4 million shares of the company.

Third Point has been building Sothebys stake

Dan Loeb’s fund ended the June quarter with 2.5 million shares of Sothebys, according to regulatory filings. Street Insider reports that the stake disclosed today is a 57 percent increase from Third Point’s stake in the company at the end of June.

CNBC was one of the first to spot the filing, and it reported the stake via its Twitter feed. After that tweet, shares of Sothebys (NYSE:BID) surged 4 percent.

Third Point to push for changes

In the filing, Third Point said its initial purchases of common shares were for investment purposes. However, now the fund discloses that it plans “to engage in a dialogue with members of the Board or management.” The fund also said its dialogue and communications with Sothebys (NYSE:BID) and its representatives “may relate to potential changes of strategy and leadership.”

Shares of Sothebys (NYSE:BID) have risen steadily for much of the year. Shares have climbed from a little over $30 a share up close to $50 a share now, thanks to the news about Dan Loeb and Third Point’s investment.

Sothebys on Twitter

Twitter users have been reacting to the news about Third Point’s increased stake. User Kyle E. Metivier even poked fun of Carl Icahn. “Doesn’t Dan Loeb know proper market protocol is to tweet your position?” he posted.