Oct. 18 (Bloomberg) -- Sotheby's contemporary-art sale in London last night missed its presale estimate as the auctioneers struggled to find buyers for many high-value works during the worst financial crisis since the Depression.

The New York-based auction house sold works by Andy Warhol, Jean-Michel Basquiat and Gerhard Richter in the 62-lot sale that fetched 22 million pounds ($38 million) with fees during the Frieze Art Fair week. Sotheby's had estimated that it would raise a total of between 30.6 million pounds and 42.8 million pounds.

``The results reflected the market was influenced by financial uncertainty,'' said Cheyenne Westphal, Sotheby's European chairman of contemporary art. She said it was the second highest total for an October contemporary-art sale at Sotheby's.

The auction represented the first major test of the art market since bank bailouts and political leaders' efforts to prevent economic recession. Dealers said declines in stock and real-estate prices could cut demand for contemporary art before New York auctions in November, especially if Russian buyers stay away. A survey of U.K. valuers said the Damien Hirst auction last month may have marked the top of the art market.

Last night, 73 percent of the lots sold. Last October, the equivalent auction at Sotheby's totaled 34.9 million pounds with fees, in line with estimates. On that occasion, 84 percent of the material sold.

Guaranteed Minimums

Sotheby's either part-owned, or guaranteed minimum prices to the sellers of, 10 works in the latest sale with a combined low estimate of 15.5 million pounds. These represented about half the lower estimated value of the entire sale.

The auction house lost money on the group of works it guaranteed. Though nine of these sold, seven went for less than their low estimates. The biggest flop was Richter's 1995 figurative landscape ``Jerusalem.'' It failed to sell, against a lower estimate of 5 million pounds.

The Warhol artwork ``Skulls,'' consisting of 10 silkscreen paintings of skulls, was the most expensive guaranteed lot. It was bought by New York collectors Jose and Alberto Mugrabi for a below-estimate 4.4 million pounds with fees. The 6-foot-4-inches- high work had been estimated to fetch between 5 million pounds and 7 million pounds.

``The market was excellent,'' Jose Mugrabi said in an interview. ``There were some failures but less than the stock market. I feel safer with Warhol than with U.S. Treasury bonds.''

``Skulls'' had been assembled in 1976 by the Zurich art dealer Thomas Ammann, who conceived the project of a complete catalog of Warhol's works. The seller of the piece had acquired it directly from Ammann, and it had never appeared at auction before, said Sotheby's.

Record Price

The price was a record for a Warhol skull silkscreen. The previous high was the 1.2 million pounds paid at Christie's International, London, for ``Six Skulls,'' also dated 1976, according to the saleroom result tracker Artnet.

The auction house said it asked the consigners to lower the reserve levels before the sale, reflecting the current economic climate. Takashi Murakami's 2002 soft-steel sculpture ``Troll's Umbrella'' was allowed to sell for 205,250 pounds against a lower estimate of 300,000. Usually the reserves are fixed close to the low estimate.

One of the successes of the night was the record 349,250 pounds paid by a telephone bidder for the aluminum bottle-top hanging ``Healer'' by the Ghanaian sculptor El Anatsui, estimated at 180,000 pounds to 250,000 pounds.

Richter Abstract

Richter's red oil-on-canvas ``Abstraktes Bild (Rot)'' -- a guaranteed work -- fetched 2.8 million pounds, below its presale low estimate of 3 million pounds. New York private dealer Nancy Whyte bought the abstract painting.

Basquiat's ``Untitled,'' an acrylic and oilstick and paper collage on masonite, sold for 1.6 million pounds.

``While our total fell short of its low estimate,'' Westphal said an e-mailed release, ``the sale was assembled in a very different economic environment from that which prevailed today.

``It is important to keep perspective; this market has witnessed rapid growth. Buyers are continuing to respond to unprecedented saleroom opportunities.''

Dealers were also keen to put a positive spin on the auction.

``In the context of the financial markets, this was the most successful sale ever conducted,'' said the London private dealer Ivor Braka.

Sotheby's shares dropped 21 cents, or 1.97 percent, to $10.44 in New York yesterday. The stock is down 72.6 percent this year.

(Scott Reyburn and Katya Kazakina are reporters for Bloomberg News. The opinions expressed are their own.)

To contact the writers on the story: Katya Kazakina in London at kkazakina@bloomberg.net; Scott Reyburn in London at sreyburn@hotmail.com.

Last Updated: October 17, 2008 19:02 EDT