A. Alfred Taubman, who formerly controlled Sotheby’s Holdings Inc., is cutting his stake to 4.95 percent, according to a filing. The company’s stock has declined over the past week as other holders sold.

The shopping-mall magnate agreed to sell 3.9 million shares in the No. 2 auction house, which has its main salerooms in New York. His wife, Judith, will sell 171,253 shares.

Taubman briefly regained his position as Sotheby’s largest shareholder this week, with a 12.2 percent stake, after Ariel Capital Management LLC sold its entire stake in the company.

The sales by Sotheby’s top two holders may mean that the company’s shares are peaking, after a gain of about 55 percent this year as the art market boomed. The stock closed at $28.51 yesterday, down 3 cents, in New York Stock Exchange composite trading. It reached $32.27 on April 6, a six-year high.

Posted: 04|13|06 at 10:30 am. Filed under: Auction News.