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The Walt Disney Company has won the support of investor ValueAct Capital, ahead of a battle over the entertainment company’s future expected later this year.
In a statement on Wednesday, Disney said it had entered into an “information-sharing” agreement with ValueAct, which is a shareholder in the company, and would consult with the investment firm on “strategic matters”.
It also said that ValueAct would support the Disney board’s nominees for election at this year’s annual meeting.
Activist hedge fund Trian Partners plans to nominate two candidates to Disney’s board this year, intensifying its campaign against the media and entertainment company. Trian controls a roughly $3bn stake in Disney and has been at odds with the group for the past year, accusing the board of being too close to chief executive Bob Iger.
ValueAct started building its position in Disney last year, but has not disclosed the size of its stake.
“ValueAct Capital has a record of collaboration and co-operation with the companies it invests in, and its co-CEO Mason Morfit has been very constructive in the conversations we’ve had over the past year,” said Iger.
Morfit described Disney as “the world’s leading entertainment company”, adding that it had “the best intellectual property, sports brand and parks and experiences assets in the industry”.
Trian last year said that Disney’s board was too closely connected with its chief executive, and too disconnected with shareholders’ interests. It plans to put forward its co-founder Nelson Peltz and former Disney executive Jay Rasulo as directors at the annual meeting this year.
In November, the Disney board appointed two new directors — outgoing Morgan Stanley chair and chief executive James Gorman and Sir Jeremy Darroch, former group CEO of Sky.
The company’s annual meeting usually takes place in March or early April.
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