Disney has a new ally in activist investor ValueAct Capital Management, garnering its support for the company's board nominees as it continues to wage a proxy battle with Nelson Peltz.
The Walt Disney Co. said Wednesday that a confidentiality agreement with ValueAct will allow the company to provide information to ValueAct and consult with it on strategic matters, including through meetings with its board and management.
鈥淰alueAct 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鈥檝e had over the past year. We welcome their input as long-term shareholders,鈥� Disney CEO Bob Iger said in a statement.
ValueAct confirmed it will support Disney鈥檚 slate of board nominees.
Last month, Peltz鈥檚 investment management firm Fund Management said that it was planning to nominate the activist investor and a former chief financial officer of Disney for seats on the media and entertainment company鈥檚 board.
Along with Peltz, Trian is planning to nominate James Rasulo, who served as Disney鈥檚 CFO from 2010 to 2015. Prior to serving as CFO, Rasulo was chairman of Walt Disney Parks and Resorts Worldwide from 2005 to 2009 and was president of Walt Disney Parks and Resorts from 2002 to 2005.
Trian, which owns $3 billion of common stock in Disney, is looking to nominate Peltz and Rasulo to the Disney board at the company鈥檚 2024 annual shareholders meeting, which is expected to be held in the spring.
Disney, based in Burbank, California, has said that its governance and nominating committee, which evaluates director nominations, will review the proposed Trian nominees and provide a recommendation to the board as part of its governance process.
Disney also confirmed on Wednesday that it has received notice that Blackwells Capital plans to nominate three people for election to its board. As with Peltz鈥檚 nominees, Disney said that its governance and nominating committee will review Blackwells鈥� proposed nominees and give a recommendation to its board.
Peltz鈥檚 proxy battle with Disney has spanned nearly a year. In January Peltz sought to join Disney鈥檚 , claiming that the company was struggling with self-inflicted problems. At the time, Disney urged shareholders to vote against Peltz and named current board member Mark Parker as its chairman. Parker, who also serves as executive chairman at Nike Inc., succeeded Susan Arnold, who didn鈥檛 stand for re-election due to Disney鈥檚 15-year term limit requirements.
By February Peltz ended his for a Disney board seat, one day after CEO Bob Iger announced a of the company that included thousands of job cuts.
However, in November Trian decided to resurrect its proxy battle. Disney put out a statement at the time defending the company and its board.
Peltz has previously waged successful proxy battles at blue chip companies including DuPont and Procter & Gamble.
In morning trading, Disney's stock rose 14 cents to $90.85.
Michelle Chapman, The Associated Press
