In a surprising turn of events, Bloomberg News reported that Disney’s largest shareholder, index fund manager Vanguard, plans to support management over Nelson Peltz’s Trian Partners in an upcoming board vote. This decision comes as a blow to Peltz’s ambitions to join Disney’s board, considering that Vanguard holds a significant 7.8% of Disney shares.
The news of how Disney’s largest shareholders are supposedly voting has sparked harsh criticism from onetime activist investor Bill Ackman. Ackman took to social media platform X to express his concerns about the leaks and the potential impact they could have on the election outcome. He urged Disney shareholders to support Peltz’s efforts, claiming that he would be a valuable addition to the board.
Not only is Vanguard siding with Disney’s management, but BlackRock, Disney’s second-largest shareholder, with 4.2% of shares, is also supporting the incumbent board and CEO Bob Iger. This united front from the top shareholders poses a significant challenge to Peltz’s campaign. Additionally, Trian has garnered support from smaller shareholders like Neuberger Berman and CalPERS, but the backing of major players like Vanguard and BlackRock could tip the scales in favor of Disney’s current leadership.
Bill Ackman emphasized the importance of maintaining confidentiality during the election process, as leaking results prematurely can influence the final outcome. The fact that media leaks have surfaced, allegedly coming from Disney or its advisors, raises questions about the motivations behind management’s opposition to Peltz’s candidacy. It is crucial for the integrity of the election that all shareholders’ votes remain private until the official results are announced.
The Final Showdown
With Disney’s shareholder meeting scheduled to begin on Wednesday at 1 p.m. ET, the stakes are high for all parties involved. While Trian controls 1.8% of Disney shares through an arrangement with former Marvel Chairman Ike Perlmutter, the support of major shareholders like BlackRock and Vanguard could be a deciding factor in the board election. Disney has enlisted the support of influential figures like JPMorgan Chase CEO Jamie Dimon and Star Wars creator George Lucas in their efforts to retain control.
The battle for Disney’s board is shaping up to be a contentious showdown between competing interests. Vanguard’s decision to support management over Peltz’s Trian Partners adds a new dimension to the ongoing struggle for control. As the shareholder meeting approaches, all eyes will be on the outcome, which could have far-reaching implications for the future direction of the media giant.