Trian Fund Management, the activist hedge fund firm founded by Nelson Peltz, is preparing to up the stakes in its campaign to agitate for change at The Walt Disney Company, by taking its case directly to shareholders.
The firm which, together with its affiliates, beneficially owns approximately $3bn of Disney stock, has issued a statement recent following conversations with Disney’s CEO, where the entertainment giant extended an offer to Trian to meet with the Board but turned down the hedge fund’s request for Board representation, including Peltz.
In a statement Trian said: “Since we gave Disney the opportunity to prove it could ‘right the ship’ last February, up to our re-engagement weeks ago, shareholders lost ~$70bn of value. Disney’s share price has underperformed proxy peers and the broader market over every relevant period during the last decade and over the tenure of each incumbent director.
“Investor confidence is low, key strategic questions loom, and even Disney’s CEO is acknowledging that the Company’s challenges are greater than previously believed. While James Gorman and Sir Jeremy Darroch represent an improvement from the 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.”