Big names back Disney at critical time in activists' battle
investing.comBy Dawn Chmielewski and Svea Herbst-Bayliss
NEW YORK (Reuters) — What do George Lucas, Jamie Dimon and the family of Walt Disney (NYSE:DIS) have in common?
The creator of «Star Wars,» the billionaire Wall Street CEO and the descendants of Walt Disney's founders have thrown their support behind Chief Executive Bob Iger and the entertainment company's board nominees in a high-stakes fight.
All expressed faith in Iger's leadership and plans for reinvigorating the century-old company, implying shareholders should not let activist investors Nelson Peltz's Trian Fund Management or Blackwells Capital into the Disney castle.
The hedge funds say Disney lost its creative spark, bungled succession planing and was slow to embrace new technology.
They are seeking board seats to fix the perceived problems.
The Disney backers have created a string of public endorsements rarely seen in proxy fights that corporate governance experts, investors and bankers are calling noteworthy, savvy and timely.
«Endorsements on either side of a proxy fight — for the company or the activist — encourage other shareholders to take a closer look at the personal, financial, or commercial ties behind that support,» said Jessica McDougall, a partner and chair of corporate governance and shareholder engagement at Longacre Square Partners.
For example, Disney has paid the company headed by Dimon, JPMorgan Chase (NYSE:JPM), more than $160 million in fees since 2014, according to LSEG data, making it the highest amount of fees paid by Disney to any investment bank in that period. JP Morgan is currently working with Disney to defend against the hedge funds.
Last month, eight grandchildren of Walt and Roy Disney, including Abigail Disney, who spoke out about
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