Nelson Peltz Slams Disney For “Scorched Earth” Board Campaign
After The Walt Disney Company went on the offensive against Nelson Peltz and his ally Jay Rasulo, the activist investor is striking back.
Earlier this week, Disney released a new video titled Peltz and Rasulo: Disruptive and Destructive, in which the company argued that adding Peltz and Rasulo to the board could cause unprecedented problems.
“If they succeed, Disney could suffer the same fate as other great companies that Peltz has previously infiltrated, such as GE and DuPont,” Disney warned.
In regards to Rasulo, Disney noted that the ex-CFO “hasn’t been employed since leaving Disney, and the last time he joined the board of a media company, the stock tanked.”
Peltz Strikes Back
On Wednesday, Peltz lashed out against Disney, accusing the company of “running a scorched-earth campaign that appears to be focused on deflecting attention from the Board’s failures.”
In his statement, Peltz noted that he “loves” Disney and believes that the company “has unparalleled assets and opportunities and every reason to grow and prosper.”
“Instead of recognizing our good faith and track record, Disney claims that we have a history of ‘attacking’ companies and have ’infiltrated’ boards and we are seeking to create ‘maximum disruption,'” Trian wrote.
“More unscrupulous still is Disney’s claim that our candidates (including Disney’s own former CFO) are ‘oblivious’ and that our ideas for improving the Company are ‘dangerous’ and ‘inane,’” the statement continued.
“In our view, this charged and disingenuous rhetoric seems calculated to distract shareholders from Disney’s poor track record and sidestep accountability. So too is Disney’s focus in this campaign on Bob Iger and Ike Perlmutter.”
The Battle Ramps Up as Time Runs Out
While Bob Iger has been aided in his efforts to thwart Peltz by recent endorsements from the Disney family and JPMorgan Chase CEO Jamie Dimon, Disney still views Peltz as a big threat.
The final showdown between Iger and the activist investor will come to a head at the company’s annual meeting on April 3.