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Walt Disney turns down Trian request for Board representation - activist investor to take case directly to shareholders

Published 30/11/2023, 16:44
© Reuters.
DIS
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Activist investor Trian Fund Management said Thursday that Walt Disney (DIS) has turned down their request for Board representation.

Trian owns approximately $3 billion worth of Walt Disney Company (NYSE:DIS) shares. It revealed that following conversations with Disney's CEO, the company extended an offer to Trian to meet with the Board, however, it turned down the board representation request, which included a representative from Trian.

Earlier this month, reports stated that Trian will likely nominate three or four directors to the Disney board.

"Since we gave Disney the opportunity to prove it could 'right the ship' last February, up to our re-engagement weeks ago, shareholders lost ~$70 billion of value," said Trian in its statement. The activist investor said investor confidence in the company is low, and "key strategic questions loom."

The latest statement from Trian follows the appointment of James P. Gorman, chairman and CEO of Morgan Stanley, and veteran media executive Jeremy Darroch as new directors.

"While James Gorman and Sir Jeremy Darroch represent an improvement Disney's status quo, the addition of these directors will not, in our view, restore investor confidence or address the root cause behind the significant value destruction and missteps that this Board has overseen. Trian intends to take our case for change directly to shareholders," Trian added.

Earlier in the session, it was reported that Trian is now seeking two seats on the DIS board.

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