OAN's Avril Elfie
10:35am – Thursday, January 4, 2024
Disney has signed a deal with ValueAct Capital Management amid a proxy battle with billionaire businessman and investor Nelson Peltz.
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The Walt Disney Company announced Wednesday that it has entered into a nondisclosure agreement with ValueAct that allows it to provide information and consult with ValueAct on strategic matters.
“ValueAct Capital has a track record of working with and collaborating with our portfolio companies, and co-CEO Mason Morfitt has been very constructive in the conversations we have had over the past year. We look forward to working with them as long-term shareholders. We welcome their input,” Disney CEO Bob Iger said in a statement.
Mr. Peltz's investment management firm, Trian Fund Management, announced last month that it plans to name the activist investor and former Disney chief financial officer to the media and entertainment company's board of directors.
In addition to Peltz, Tryon plans to recommend James Laszlo, Disney's former chief financial officer from 2010 to 2015.
Prior to assuming the CFO role, Mr. Laszlo served as President of Walt Disney Parks and Resorts from 2002 to 2005 and as President of Walt Disney Parks and Resorts Worldwide from 2005 to 2009. Served as chairman.
At Disney's annual shareholder meeting scheduled for spring 2024, Trian, which owns $3 billion worth of Disney's common stock, plans to propose that Mr. Peltz and Mr. Laszlo be appointed to Disney's board of directors.
As part of that process, Disney said its Governance and Nominating Committee, which evaluates director nominations, will review potential candidates for Tryon and make recommendations to the board.
On Wednesday, Disiny also said he had been informed that Blackwells Capital intended to field three director candidates.
They went on to say that, similar to Mr. Peltz's nomination, its Governance and Nominating Committee will consider Mr. Blackwell's proposed nominee and make a recommendation to the board.
Peltz and Disney have been engaged in a proxy war for almost a year. Mr. Peltz applied to join Disney's board in January, suggesting that the company was in trouble of its own making.
Disney named current board member Mark Parker as chairman at the time, urging shareholders to vote against Peltz.
In February, Peltz gave up his seat on Disney's board just one day after CEO Bob Iger announced a major restructuring that would lead to the loss of thousands of jobs.
However, Tryon made the decision to revive the proxy war in November, and Disney defended its business and board in a statement released at the time.
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