Disney activist investor Ancora Holdings urges appointment of Nelson Peltz to board
Published: 15:03 05 Dec 2023 EST
The Walt Disney Company (NYSE:DIS) activist investor Ancora Holdings Group in a letter to shareholders on Tuesday has urged the company to add Nelson Peltz and his asset management firm Trian Fund Management to its board.
The letter comes just days after activist investor Peltz and Trian, which owns about $3 billion in Disney stock, launched a proxy fight against the entertainment giant after failing to win two seats on Disney’s board.
“A degree of shareholder-driven change is certainly warranted in Disney’s boardroom following an extended period of absent minded governance, ineffective succession planning, polarizing actions and sustained value destruction,” Ancora Holdings wrote in the letter.
Ancora wrote that Disney’s current directors were responsible for the company’s financial setbacks and politicized initiatives which are “dividing rather than delighting” consumers.
“We believe Disney is saying the right things about restructuring and transforming the enterprise,” the company wrote. “Nonetheless, the addition of a shareholder representative or investor-designated directors to the board can help ensure that these efforts are carried out in the most effective way.”
According to FactSet, Ancora Holdings owns more than 60,000 Disney shares valued at about $5.5 million on Tuesday afternoon. Disney shares traded hands at $90.51 and are down 1.9% in the year to date.
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