The Walt Disney Company board has extended a meeting invitation to Nelson Peltz’s Trian Fund Management but has rebuffed the activist’s request for board representation.
The invitation was revealed in a November 30 press release from Trian, less than 24 hours after Disney announced that it would be adding former Sky boss Jeremy Darroch and outgoing Morgan Stanley CEO James Gorman to its board from early next year.
Trian however remains unconvinced by the benefit the new directors bring, arguing that while Gorman and Darroch “represent an improvement from the status quo” their presence on the board will not “restore investor confidence or address the root cause behind the significant value destruction and missteps that this board has overseen.”
“Since we gave Disney the opportunity to prove it could ‘right the ship’ last February, up to our reengagement weeks ago, shareholders lost approximately $70 billion of value,” the activist – which owns roughly $3 billion worth of Disney stock – asserted.
Trian and Disney first engaged at the beginning of the year, with the activist declaring the fight “over” following an announcement of a series of cost saving measures on February 8. Since that date however, Disney’s share price has fallen by over 17%, to $92.52 per share as of 11:07 a.m. EST on Thursday.
“Trian intends to take our case for change directly to shareholders,” the release concluded.
At least one other shareholder has stated opposition to Trian’s campaign. In a press release late Thursday, boutique activist firm Blackwells Capital called Trian’s demands misguided.
“Blackwells is concerned that Trian’s campaign prioritizes Mr. Peltz’s ego over what is best for all Disney shareholders, and that its latest effort may cost Disney shareholders upwards of $50 million and serve only as a value destructive fog for Disney’s leadership and Board,” stated Blackwells chief Jason Aintabi.