Re: Fwd: FW: Giacometti Exchange

----- Original Message ----
From: "DKIESQ@aol.com" <DKIESQ@aol.com>
To: jeeproject@yahoo.com
Sent: Monday, February 12, 2007 2:49:25 PM
Subject: Fwd: FW: Giacometti Exchange

proposals from Paul Gray.  Please advise as to how you would like me to proceed.  Thanks.

 

Darren K. Indyke
Attorney-At-Law
457 Madison Avenue
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Tel: 212-750-1176
Fax: 212-750-0381
e-mail: dkiesq@aol.com
 
 
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Darren,

The art market is still growing strongly and there are surprisingly few options that, given our close relationship with Les, we feel comfortable enough about to propose for this purpose.  Works of real quality, if one can find them, either sell immediately or are priced at market leading levels. 

Here is our best prospective trade item:

#JJ1104019
JASPER JOHNS (b. 1930) 
Untitled, 1981-1982
Oil on canvas  
30 x 90 inches 
76 x 229 centimeters   

We own this work currently.  We bought it from the estate of a Chicago collector that needed money for taxes three years ago and we bought it REALLY right.  We paid $3.4 million at a time when we were confident the proper value was $6 million.    We also knew of the upcoming major museum retrospective for the artist which is currently at the National Gallery of Art in DC and we decided to hold the painting for the longer term.  We rarely do this intentionally, but Jasper Johns is one of the most important artists of the century, he has produced comparatively little work and in the rare instances the works appear in the market they typically sell for the highest prices of any living artist.  You probably read that I negotiated the sale of a Jasper Johns painting for David Geffen last fall for $80,000,000.  Even early works on paper have sold for more than $10 million at auction.  We have been pursued by Christie's recently to consign it for their May auctions with an (opening proposed) estimate of $6 - $8 million, something we are not seriously considering because we still think there is plenty of upside.  In a market where far lesser works are selling for upwards of this level, we continue to feel this is a great "hold."  Richard and I have discussed this and if we can count on having the work for re-sale with our normal selling commission of 10%, we would agree to accept the Giacometti proceeds in equal exchange for the Jasper Johns.

Second idea: We control (on consignment from a private collector) one other work that is superb and fresh to the market:

#RL0101029
ROY LICHTENSTEIN (1923-1997)   
Head, 1980
Oil and magna on canvas
50 x 36 inches 
127 x 91 centimeters

The asking price is $6,500,000 and we would receive a 10% commission on its sale from the seller.  We think this price is leading the market by about a million.  We could make a cash offer on it and hope to hit somewhere around $5 million taking the balance and acquiring something else to make-up the balance:  We have access to a terrific Calder sculpture from a private collection that is not yet on the market, but we have it under contract at $1,800,000 net cost.  Other smaller and saleable items available that could make up any difference are a Matisse drawing, small Franz Kline painting, Picasso drawing or small Dubuffet painting.

One final idea:

I am negotiating the consignments of two great Giacometti sculptures right now from separate collections.  Both happen to be casts of works already in Les and Abigail's collection so I would not have ordinarily offered these to them, but the flip side is that they know and feel very comfortable with these works.  One is "Large Standing Woman I" and the other is "Large Head of Diego."  The former will probably cost us around $16-$18 million.  For the latter, they are asking $19.5 net and we can always try to negotiate.  Of course either of these would require some additional investment, but very worthwhile in our opinion.

Perhaps we should discuss this in more detail after you and Jeffrey have considered the above.

Best,

Paul
__________________________
Paul Gray
Richard Gray Gallery
312-642-8733 Ext. 16
www.richardgraygallery.com