Disney Family Rebukes Nelson Peltz, Praises Bob Iger in Shareholder Letters

livemint.com:

Disney’s proxy fight with activist investor Nelson Peltz has turned into a family feud. The descendants of Walt Disney and his late brother Roy O. Disney on Thursday released two letters addressed to Disney shareholders, backing the company and Chief Executive Bob Iger in their fight against Peltz and his Trian Fund Management.

Trian is seeking two seats on the Disney board at April’s annual meeting.“Disney is not a company that makes widgets—it makes magic," read one of the letters, which was signed by Roy P. Disney, Susan Disney Lord, Abigail E. Disney and Tim Disney, all grandchildren of Walt’s brother, who served for decades as the financial brains behind the company.

“Bob Iger, his management team, and the Board of Directors are faithful to this magic." They criticized Peltz and other activists in the company as “wolves in sheep’s clothing, just waiting to tear Disney apart if they can trick shareholders into opening the door for them." The letters could bolster Disney’s case to shareholders as investors cast their ballots for board members. As April’s annual meeting approaches, Disney and Trian have traded barbs in securities filings and videos posted online.Disney says Peltz and Trian’s other nominee, former Disney chief financial officer Jay Rasulo, lack successful track records in the media industry necessary to offer constructive advice and are motivated by personal grudges against Iger. Trian, meanwhile, has argued that Disney needs to cut costs and that the company has lost its creative mojo.