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Disney attacks Peltz’s Media Expertise in proxy Battle

Disney responded negatively to activist investor Nelson Pleltz’s petition for board membership by pointing out his lack of experience in large media and technology companies.

Disney stated in an investor presentation that was a part of a security filing that Pleltz’s does not have a track record in large-cap media or technology and does not have any answers to propose for the changing landscape of the media industry.

The harsh response comes after the chief executive officer of Trian Fund Management sent a preliminary proxy statement to Disney’s board of directors last week, which detailed plans to mount a fight for a seat on Disney’s board.

Trian, which holds a stake in Disney worth less than 5% and is estimated to be worth USD 900 million, voiced concerns regarding the decline in shareholder value and criticized management for overpaying for the assets of Fox and Sky PLC.

The company also criticized Disney for having inadequate corporate governance, pointing to failed succession planning and Disney’s lack of involvement With Trian in the most recent few months.

The hedge fund said in a statement, with many challenges weighing on investor sentiment, Trian believes that Disney’s recent performance reflects the hard truth that the company is in crisis.

However, the Disney filing said its board was in a good place to move the company forward. To drive shareholder value, Peltz presented no strategy and did not have an understanding of the company’s business.

If sources are to be believed, Bob Iger, who was appointed as Chief Executive Officer in November after Bob Chapek was ousted, has promised to focus on profitability and cost cuts.

Disney said that while its board members and senior leadership have tied up with Mr Peltz several times and the board does not approve the Trian Group nominee, said reports.

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