The Morning Ledger: The Priciest Shareholder Fight Ever Is Headed to Disney’s Boardroom
Good morning, CFOs. A boardroom brawl at Walt Disney is predicted to be the costliest shareholder battle ever, and an opportunity for on a regular basis traders to have a big effect.
Two activist hedge funds—Nelson Peltz’s Trian Fund Management and the smaller Blackwells Capital—are individually going toe-to-toe with Disney to realize spots on its board and problem the technique of Chief Executive Bob Iger.
All in, the three events might spend north of $70 million forward of an April 3 shareholder vote. They are already shelling out for slick advertising and marketing supplies, social-media blitzes and the companies of proxy solicitors—akin to marketing campaign strategists—who wrangle shareholder assist for his or her purchasers’ board candidates.
One cause for the excessive worth: the tens of millions of particular person traders who personal an outsize portion of Disney’s roughly 1.8 billion shares. They management over a 3rd of Disney’s inventory—greater than is typical for a public firm. Institutional traders resembling BlackRock and Vanguard maintain the remaining, and their votes carry heft, too. Getting the phrase out to such a widespread shareholder base is expensive.
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