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Peltz brings Disney proxy battle to a close, books a reported $1bn profit

Published 30/05/2024, 08:16
© Reuters Peltz brings Disney proxy battle to a close, books a reported $1bn profit
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Proactive Investors - Activist investor Nelson Peltz’s Trian Fund Management has sold its entire stake in Walt Disney Co (NYSE:DIS), bringing a long-running proxy battle for board-level influence at the entertainment giant to an end.

The news was first reported by CNBC, which noted that Peltz failed to rouse shareholder support for his campaign to get a seat on the board for himself and former Disney finance chief Jay Rasulo.

In the April stockholder vote, Disney's nominees were backed by a "substantial margin", with large investors such as Vanguard and BlackRock (NYSE:BLK) supporting the Mouse House’s picks.

Only 31% of all shareholders supported Peltz's addition to the board.

Peltz, father-in-law to Brooklyn Beckham, was calling for the ousting of board members Michael Froman and Maria Elena Lagomasino, tighter performance-linked executive pay, and for Disney to pursue ‘Netflix-like’ margins to restore its share price.

He was also calling for clarity over a succession plan for Disney’s chief executive Bob Iger.

Despite the failed activist campaign, CNBC reported that Peltz booked a $1 billion profit from selling his shares.

Currently trading at $100.88, Disney stock is 11.2% higher year to date and 15% higher year on year.

Read more on Proactive Investors UK

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