The grandchildren of Walt Disney and Roy O. Disney are voicing their support for Bob Iger in his board seat battle against Nelson Peltz.
Two separate letters were sent to shareholders Thursday from each set of grandchildren, including Abigail Disney, who has been outspoken against recent Disney practices.
In the letter from grandchildren of Roy O. Disney, which is signed by Abigail and three others, the grandchildren outline the “magic” they experienced at the company throughout their childhoods, and say that Iger can continue that spirit at the company. Meanwhile, they call Peltz one of the “wolves in sheep’s clothing” and also one of the “villains” in a Disney story.
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“Bob Iger, his management team, and the Board of Directors are faithful to this magic. They understand that the longevity of The Walt Disney Company isn’t only the result of smart business decisions; it is rooted in the strong emotional connection Disney continues to forge with generations of people from around the globe,” the letter reads.
The statement adds, “We may not agree about everything, but we know that our grandfather would be especially proud of what Disney means to the world today. We also know that, like us, he would be very concerned by the threat posed by self-anointed ‘activist investors’ who are really wolves in sheep’s clothing, just waiting to tear Disney apart if they can trick shareholders into opening the door for them.”
The Roy O. Disney grandchildren go on to mention the hostile takeover attempt of Disney by Saul Steinberg — who they say was friends with Peltz — and “was defeated, much as these activists must be defeated today.”
The grandchildren of Walt were more succinct, but also threw their support behind Iger, saying he can help continue the “brand of integrity and storytelling” created by their grandfather.
“Bob Iger has grown this company in a modern world, and he continues to maintain a balance of creativity and profit. It is still a company based on the desire to entertain and explore. There have been challenging times, but this current management has adjusted and grown through those challenges,” the letter reads.
Peltz, an activist investor, is staging a proxy fight against Disney due to what he says is Disney’s lagging stock performance, as well as a lack of ownership of Disney shares from the company’s board. Blackwells Capital has also nominated its own board slate of Craig Hatkoff, Jessica Schell and Leah Solivan. All parties have been campaigning, including Disney, which launched an animated video featuring Prof. Ludwig Von Drake, in the lead up to the April 3 shareholder meeting. Voting for most shareholders must be submitted before 11:59 p.m. on April 2.
In an emailed statement, a spokesperson for Peltz’s Trian Partners pushed back on the claims in the letter.
“We love Disney and recognize building on its rich history of delighting loyal fans is essential to its future success. Trian invests in great companies like Disney and helps them grow and thrive for the long term – and we have the track record to prove it at companies like P&G, Heinz and Mondelez,” the statement reads.
