Activist investor Nelson Peltz finds himself in a familiar position as three major Disney investors play a crucial role in determining the fate of his proxy battle. BlackRock, Vanguard, and State Street have a significant history with Peltz's past proxy fights, shaping the narrative of his current struggle against Disney.
The DuPont Battle: A Decade Ago
The pivotal moment in Peltz's history dates back nearly ten years to his doomed battle with DuPont. In 2015, Peltz's firm, Trian Partners, faced a setback as Vanguard, BlackRock, and State Street, key investors in DuPont at the time, voted against his bid for four board seats. This defeat marked a significant turning point in Peltz's activist endeavors.
The P&G Encounter: A Glimmer of Hope
Fast forward to 2017, Peltz engaged in a proxy battle with Procter & Gamble (P&G), experiencing a mixed outcome. While Vanguard remained unsupportive, BlackRock and State Street surprisingly sided with Peltz, signaling a shift in investor sentiment towards his activist initiatives.
The Disney Dilemma: A Decisive Moment
As Peltz navigates his proxy fight with Disney, the spotlight once again falls on BlackRock, Vanguard, and State Street. These institutional giants hold the power to sway the outcome of Wednesday's shareholder meeting, potentially determining the success or failure of Peltz's campaign for two board seats at Disney.
The Current Landscape: A Tilt Towards Disney
Recent reports suggest that Disney may be gaining an upper hand over Peltz, with asset management firm BlackRock poised to vote against him. While T. Rowe Price, Neuberger Berman, and California Public Employees' Retirement System stand in support of Peltz, the broader investor sentiment remains uncertain, with State Street and Vanguard's decisions yet to be disclosed.
The Allies and Adversaries
On Peltz's side stand money manager T. Rowe Price, global asset manager Neuberger Berman, and the California Public Employees' Retirement System. Conversely, prominent figures such as filmmaker George Lucas, Chase CEO Jamie Dimon, Laurene Powell Jobs, and former Disney CEO Michael Eisner align with Disney's current leadership.
The unfolding proxy battle underscores the intricate dynamics between activist investors and corporate behemoths, with the ultimate outcome resting in the hands of a select group of influential stakeholders.
—————————————————————————————————————————————
By: ggoodwin@businessinsider.com (Grace Eliza Goodwin)
Title: Nelson Peltz’s Disney Proxy Fight: Investors’ Influence on Outcome
Sourced From: www.businessinsider.com/nelson-peltz-proxy-fight-disney-may-hinge-3-investors-2024-4
Published Date: Tue, 02 Apr 2024 22:45:46 +0000
Leave a Reply