- Blackwells Capital is concerned about fellow shareholder ValueAct
- It questions whether ValueAct was paid to take a pro-Disney position
- Follows Disney’s decision to make an information sharing deal with ValueAct
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A leading activist investor has sued Disney over its relationship with another shareholder, as the long-running boardroom battle intensifies.
In a lawsuit filed this week, US hedge fund Blackwells Capital has raised concerns over whether fellow shareholder ValueAct was paid to take a pro-Disney position in a battle with activists.
It follows the media giant’s decision in January to strike an information-sharing deal with ValueAct, which ultimately secured support for the company’s leadership team.
Blackwells has requested “books and records” to “determine whether misconduct, mismanagement or breach of fiduciary duty has occurred.” But the legal clash comes days before Disney’s annual meeting, where shareholders will vote on the company’s direction.
The company behind Mickey Mouse and Marvel is under increasing pressure as Blackwells and Nelson Peltz’s Trian Fund Management push for seats on the board.
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Both funds argue that Disney has lost its luster under CEO Bob Iger, with New York-based Trian criticizing reckless spending and “over-the-top” executive pay. And Blackwell’s legal action is undoubtedly another setback for Disney. A company spokesperson said Blackwells’ claims were “baseless” and described the complaint as an “attempt to draw attention to their list of director candidates.”
But despite the pressure, Iger has attracted some heavyweight backers, including Star Wars creator George Lucas.
“Creating magic is not for amateurs,” Lucas said last week. “When Bob recently returned to the company during a difficult time, I was relieved. No one knows Disney better.”
Lucas is a major shareholder of Disney, having received 37.1 million shares as part of its £3 billion takeover of Lucasfilm in 2012.
Other defenders include JP Morgan boss Jamie Dimon and members of Walt Disney’s own family.
Last week Peltz defended the boardroom battle. “I’m not trying to fire Bob Iger, I’m trying to help him,” he said.