Blackwells Capital, one of the two firms looking to gain more representation on the board of The Walt Disney Company, issued a new letter to shareholders today regarding another firm’s support for Disney.
What’s Happening:
- Amidst the continuing proxy battle from both Blackwells Capital and Trian Partners, another high-profile activist firm, ValueAct Capital, reaffirmed their support for CEO Bob Iger and the Disney board.
- In their letter to shareholders, Blackwells revealed that the Disney board failed to disclose that ValueAct or its affiliates have been managing over $350 million of Disney’s pension fund assets.
- Additionally, ValueAct has been earning fees ranging from approximately $55 million to $95 million for the services provided to Disney’s pension fund since as early as 2013.
- Blackwells is calling out that shareholders have been led to believe that ValueAct provided its independent and unqualified support of the board independently.
- They ask if shareholders can “evaluate the significance of ValueAct’s endorsement without a full understanding of the relationship?”
- Blackwells has publicly demanded disclosure of Disney’s relationship with ValueAct on numerous occasions, and they are urging fellow shareholders to join them demanding that the board immediately take all necessary steps to file updated proxy materials with full disclosure of the ValueAct arrangement.
- In January, ValueAct and Disney entered into an information sharing agreement, which is where the firm initially shared their support for Disney.
- Blackwells Capital recently shared a new video that highlighted more of what they feel would help The Walt Disney Company while championing their nominations for the board.
- The presentation didn’t entirely go as planned, as they seemed to confuse Star Trek for Star Wars.
- You can read Blackwells’ full letter to shareholders here.