MICKEY MOUSE CLUB
Disney’s ally vs. Peltz
Activist investment firm ValueAct Capital Management agreed to back Walt Disney’s board nominees at its upcoming shareholder meeting as the entertainment giant fights a proxy battle with rival activist investor Nelson Peltz.
Disney signed an agreement to share confidential company information with ValueAct, plus consult with the San Francisco-based firm “on strategic matters, including through meeting with the Disney Board and management,” according to a statement to The Post on Wednesday.
“ValueAct Capital has a track record of collaboration and cooperation with the companies it invests in, and its co-CEO Mason Morfit has been very constructive in the conversations we’ve had over the past year,” Disney CEO Bob Iger said in the notice.
In recent months, ValueAct has built a large stake in Disney.
While its exact size is unclear, the investor has said it foresees Disney’s stock price trading between $120 and $190 a share, far above its $91.65-per-share closing price Wednesday.
Representatives for Disney and ValueAct did not respond to requests for comment.
Disney’s deal with ValueAct comes at it fights off Peltz’s Trian Fund Management, which has accumulated roughly $3 billion worth of Disney — about 30 million shares, up from 6.4 million earlier this year.
Seeks board seats
Trian renewed its push last month to get two seats on Disney’s board, nominating Peltz and former Disney Chief Financial Officer James “Jay” Rasulo.
The firm, which has over $8.5 billion under management, abandoned a bid for one board seat in February, the same month Iger, Disney’s then-newly reinstated CEO, initiated a sweeping revamp that slashed 7,000 jobs as part of an effort to achieve $5.5 billion in cost savings.
Peltz, who’s worth $1.5 billion and often presents himself as a partner with constructive advice for companies, reportedly objected to bringing Iger out of retirement and back into Disney’s chief role.
Trian, which Peltz cofounded in 2005, believes Disney is significantly undervalued, according to The Wall Street Journal, and has been putting pressure on Iger, who signed an extension to remain at the helm of the Mouse House through 2026, to reverse Disney’s stock decline.