Activist Ancora Calls for Truce With Trian

Ancora has sent a letter to shareholders of The Walt Disney Company calling on the company to compromise with Trian and add Nelson Peltz or a qualified designee to its board.

What’s Happening:

  • Ancora Holdings Group, LLC, which has approximately $8.7 billion in assets under management and is a shareholder of The Walt Disney Company, has issued an open letter to fellow shareholders regarding the state of Disney’s Board of Directors.
  • In the letter, they state, “We believe Disney is saying the right things about restructuring and transforming the enterprise. 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.”
  • The firm goes on to suggest that Disney should compromise with Trian Fund Management in an effort to avert an election contest.
  • The letter also states, “A degree of shareholder-driven change is certainly warranted in Disney’s boardroom following an extended period of absentminded governance, ineffective succession planning, polarizing actions and sustained value destruction. Many of Disney’s current directors and executives bear responsibility for lapses that have undermined the Company’s positioning in the exceedingly competitive and ever-changing entertainment world.”
  • It adds, “Disney’s Board faces a number of pivotal decisions over the next 12 to 24 months as it rebuilds consumer trust and oversees a complex transformation that includes an optimization of the streaming segment, a direct-to-consumer pivot for ESPN, the evolution of the Company’s film studios and a growth plan for parks. “
  • Elsewhere, while Blackwells Capital called on Peltz to end his “ego-driven” campaign to gain representation on the Disney Board, the letter from Ancora pushed back on that, stating that it was “what looks to be a self-serving publicity stunt.”
  • Concluding the letter, Ancora execs write, “Mr. Peltz (or a qualified designee) would make a fantastic addition to Disney’s Board.”
  • According to CNBC, Peltz’s Trian Capital is seeking more than two Board seats.
Tricia Kennedy
As a huge Disney fan Tricia enjoys having Walt Disney World basically in her backyard. When she's not at the theme parks she is either playing drums or with her dog Yoda. She is a lifelong Star Wars fan and has ridden Star Tours over 270 times.