Disney Confirms Blackwells Plan to Nominate Three Directors

By Dean Seal

Walt Disney has confirmed that Blackwells Capital plans to nominate three directors at Disney's next shareholder meeting, adding a new twist to the battle over the entertainment giant's board.

Disney said Wednesday that Blackwells had provided notice of its intentions and that the nominees will be evaluated in due course.

The confirmation came after Reuters reported that the activist hedge fund was eyeing three board seats while remaining supportive of Chief Executive Bob Iger. Citing unnamed sources, the report said Blackwells objects to rival activist Nelson Peltz's bid to install himself and former Disney Chief Financial Officer Jay Rasulo on the board.

Peltz's Trian Fund Management launched a proxy campaign toward the end of 2022 that called for cost cuts and board changes at Disney, but ended it in February after Iger said he would cut $5.5 billion in costs and reduce Disney's head count by 7,000.

Concerned by Disney's performance during the summer that followed, Peltz is taking another run at the company with help from friend Isaac Perlmutter, former chairman of Marvel Entertainment, who has agreed to give Peltz's firm the voting rights to his large Disney stake.

With nearly 33 million Disney shares in its war chest, Trian said in December that it intended to nominate Peltz and Rasulo to the board, weeks after the company rebuffed Peltz's previous request to become a director.

Earlier on Wednesday, Disney said activist investor ValueAct has agreed to back its slate of board nominees at the coming 2024 shareholder meeting, boosting its position in the proxy fight with Peltz. Disney agreed to share company information with ValueAct Capital Management, which has reportedly taken a substantial stake in Disney, and consult with the firm on strategic matters.

Write to Dean Seal at [e-mail]

(END) Dow Jones Newswires

January 03, 2024 09:19 ET (14:19 GMT)

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