Activist investor Nelson Peltz’s Trian Fund Management is reportedly anticipated to push for a number of board seats at Walt Disney Co., whose share have been underneath strain from Hollywood strikes and struggles for its streaming companies.
Citing sources, The Wall Street Journal reported Sunday that Trian has boosted its Disney
DIS,
stake to greater than 30 million shares in latest months, from a 6.4 million holding on the finish of the second quarter. With a stake value $2.5 billion or extra, Trian plans to push for a seat for its founding associate Peltz, and several other others, these sources mentioned.
A refusal by Disney would imply Trian may then nominate administrators for a vote on the annual Spring assembly. Peltz tried to get a board seat earlier this yr, however backed off after a Disney revamp and value cuts that boosted shares. But the inventory has misplaced 4.5% this yr, and Trian is of the view it wants a extra targeted board, the sources mentioned.
Bernstein analyst Laurent Yoon final week initiated protection of Disney shares with an outperform score, writing that whereas he has a bearish view on the corporate’s linear-media enterprise, Disney is the one viable challenger to Netflix
NFLX,
particularly as the corporate appears to purchase the remaining portion of Hulu that it doesn’t already personal.
MarketWatch has reached out to Disney and Trian for remark.
Source web site: www.marketwatch.com
