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Disney (DIS) has secured another key backer in its high-profile battle with activist investor Nelson Peltz.
In a document issued Monday and seen by Yahoo Finance, proxy advisory firm Glass Lewis told shareholders it supports the company’s current board and that it has endorsed the same activist group as Mr. Peltz’s Trian Fund Management. It recommended that votes be withheld for the candidates proposed by Blackwells Capital.
“We believe it is in the best interest of investors to support the current directors at this time,” Glass Lewis said in its recommendation, adding that alternative candidates and proposals “represent a good change compared to Disney’s current structure.” He added that he was “not sure” whether it would result in a
Peltz is currently seeking a seat on his board of directors, along with former Disney CFO Jay Laszlo. Blackwells supports the company’s current board of directors, but urges shareholders to vote for three additional nominees to the board.
If the proxy fight continues until the vote, the shareholders’ meeting scheduled for April 3 will ultimately decide the board’s fate.
Last year, as stock prices hit multi-year lows, Mr. Peltz and the hedge funds renewed their push to shake up Disney’s board.
Disney is grappling with challenges including a decline in its linear TV business, slowing growth in its parks business and losses in its streaming business.
Glass Lewis pointed to such challenges, including a high-profile political battle with Florida Gov. Ron DeSantis and concerns over succession, but said CEO Bob Iger’s efforts to turn around the business The company said its recent efforts toward achieving this goal have yielded positive results.
“Most of the recently reported quarters suggest that these efforts are indeed promising, and we think they significantly raise the bar for change at this point,” Glass-Lewis said. Ta.
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