Disney wins support from hedge funds in Peltz battle
DISNEY has won the crucial backing of activist hedge funds amid attempts to stop billionaire investor Nelson Peltz from joining its board of directors.
The US entertainment giant yesterday announced that Valueact Capital, a San Francisco-based hedge fund, will support the company’s board nominees at its annual shareholder meeting this spring.
Activist investor Blackwells Capital also announced it has nominated three individuals for director positions who are supportive of Disney’s turnaround efforts under chief executive Bob Iger.
The backing comes amid a boardroom battle with Mr Peltz’s Trian Fund Management, which last month announced plans to nominate the activist investor and Disney’s former finance chief James Rasulo for board seats.
The move comes after the New Yorkbased asset manager, which owns $3bn (£2.4bn) of Disney shares, revived its proxy battle against it in November.
Mr Peltz, whose daughter Nicola is married to Brooklyn Beckham, attacked Disney last year for “over-the-top” executive pay and its failed succession planning after parachuting in former boss Mr Iger less than a year after he retired.
The 81-year-old, known for launching aggressive campaigns to shake up companies including Procter & Gamble and Heinz, initially pushed for a board seat but ended the battle after Disney announced sweeping job cuts. Disney, which previously urged shareholders to vote against Mr Peltz, defended its board and recommended shareholders support its slate of director nominees.
In a statement released yesterday, Blackwells Capital said: “Flip-flopping, self-interest and personal quarrels have no place in a boardroom.
“Individuals seeking to gain representation on Disney’s board must have skill sets that the board needs as well as a demonstrable record of creating value for all stakeholders. Mr Peltz and his coterie seem to fail that test, time and time again”
Jason Aintabi, the chief investment officer at the New York-based investment firm, demanded that Mr Peltz “end his peacocking” to allow Disney to focus on its transformation efforts.
A spokesman at Trian said: “As Disney’s largest active shareholder, with an approximate $3bn beneficial ownership stake, Trian welcomes other shareholders attempting to help fix this iconic but wayward company. We believe longsuffering Disney shareholders need Nelson Peltz and Jay Rasulo as independent voices and catalysts for muchneeded change on what’s been a chronically underperforming board.”