In a recent report by Bloomberg News, it was revealed that Disney’s largest shareholder, index fund manager Vanguard, intends to back management over Nelson Peltz’s Trian Partners in the upcoming board vote. Vanguard’s significant ownership, holding 7.8% of Disney shares, highlights the influence that institutional shareholders can have on crucial decisions within a company.
Following the news of Vanguard’s decision to support management, onetime activist investor Bill Ackman criticized the coverage of how Disney’s largest shareholders are supposedly voting. Ackman raised concerns about the confidentiality of the voting process, stating that leaking results before the final outcome can influence the overall results. He urged Disney shareholders to consider supporting Peltz’s efforts, emphasizing the potential value he could bring to the company.
As the board vote approaches, the support of major shareholders like BlackRock and Vanguard could pose a significant challenge to Peltz’s ambitions of joining Disney’s board. With only State Street and Geode Capital Management remaining as unknowns in their decision, Peltz’s path forward may face obstacles. Trian Partners, controlled by former Marvel Chairman Ike Perlmutter, holds 1.8% of Disney shares, making them the fifth largest shareholder.
The culmination of this shareholder battle will unfold at Disney’s upcoming shareholder meeting, scheduled to begin at 1 p.m. ET on Wednesday. Retail investors have until 11:59 p.m. ET on Tuesday to cast their votes, as both sides rally support from various stakeholders. While Trian has gathered backing from smaller shareholders like Neuberger Berman and CalPERS, Disney has enlisted the support of influential figures in the corporate and media world, including JPMorgan Chase CEO Jamie Dimon and Star Wars creator George Lucas.
The outcome of this board vote will have far-reaching implications for Disney and its leadership. The clash between management and Nelson Peltz’s Trian Partners underscores the importance of shareholder support and strategic alliances within the corporate landscape. As tensions rise leading up to the shareholder meeting, all eyes will be on the decision-making process and its ultimate impact on Disney’s future direction.