Disney board room battle: Disney pulls ahead of activist investors Trian and Blackwell
Disney wants all 12 of its current directors to continue on the board. The two hedge funds, Trian and Blackwells have been pushing for their own seats.
The Walt Disney Co. has managed to pull ahead of activist investors in the battle of board seats and the future of the entertainment company, with more than half of all shares voted before the company's annual meeting on Wednesday, reported Moneycontrol.
T. Rowe backed the company and voted to re-elect Maria Elena Lagomasino and Michael Froman, the two Disney directors being challenged by Nelson Peltz's Trian Fund Management. T. Rowe owns 11.7 million shares in the company, which is around 0.64 percent stake.
Walt Disney seems to have won the support of its second-largest shareholder BlackRock as well on Monday, sources informed Moneycontrol. But BlackRock has declined to comment on the matter.
The backing of these large institutional investors could benefit Disney in this proxy war. However, people involved in reviewing the shareholders' votes said that the results could still change with more votes likely to come on Tuesday. Additionally, those who’ve already voted too could change their decision.
Activist investors Trian and Blackwells Capital, top execs at Disney as well as a large number of call centre workers were trying hard in last minute pleas to secure board candidates.
Disney wants all 12 of its current directors to continue on the board. The two hedge funds, Trian and Blackwells have been pushing for their own seats.
Disney has been in a bid to reinvigorate its creative franchises, make its streaming business profitable and find partners to build ESPN’s digital future. Thus, this board room battle comes at a crucial time for the company. Bob Iger, CEO at Walt Disney called activist campaigns a ‘distraction’.
