The Walt Disney Co (NTSE: DIS) has fended off a high-profile board challenge from activist investor Nelson Peltz’s Trian Fund Management, according to an exclusive report from Reuters which cited people familiar with the matter.
As of Tuesday evening, enough shareholder votes had been cast to re-elect Disney’s slate of directors, defeating Peltz and former Disney CFO Jay Rasulo who were nominated by Trian. Another hedge fund, Blackwells Capital, also failed in its attempt to nominate three directors.
The official results will be announced at Disney’s annual meeting on Wednesday, though the sources indicate the outcome is unlikely to change. Disney did not comment, while Trian and Blackwells declined to comment.
Peltz and the hedge funds had argued that Disney ”bungled its succession planning, lost its creative spark and failed to properly harness new technology.” Though unsuccessful in gaining board seats, Trian may still claim a financial win as Disney’s stock has surged nearly 50% since October when Peltz announced his intent to launch a board challenge.
In recent months, Disney and returning CEO Bob Iger have taken steps to regain investor confidence, including investing in gaming company Epic Games and announcing plans for an ESPN streaming service.
Information for this story was found via Reuters, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
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