(CercleFinance.com) – Trian Fund Management, the investment fund of American billionaire Nelson Peltz, contested Thursday Disney’s decision to reject the appointment of two of its representatives to the media group’s board of directors.
The activist fund sought the election of Nelson Peltz and Jay to the Disney board, but the Burbank, Calif., group closed the door on that idea Tuesday by unveiling a list of 12 directors chosen by the board.
In a press release released Thursday, Peltz considers it ‘regrettable’ that a company as emblematic as Disney, with so many challenges to overcome and opportunities to seize, has refused to engage seriously with one of its main shareholders.
He says he now wants to obtain the support of other shareholders of the company in order to renew the board.
‘Instead of having a board of directors composed of directors (…) who can bring new perspectives to meet current challenges, Disney is resisting change and asking shareholders to approve a board of directors essentially composed mainly of historical directors (and their successors chosen by them), underlines the activist investor.
The fund is calling for the appointment of a new general director as a priority in order to boost profitability which it considers to be much lower than that of its competitors, such as Netflix, and the sector as a whole.
Disney shares posted an increase of 1.2% on Thursday on Wall Street, marking one of the biggest increases in the Dow Jones index.
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