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“‘I don’t need to overwhelm them. I just need to speak reasonably to these people and explain to them where they went wrong or what opportunities they’re missing.’”
That’s activist investor Nelson Peltz, who is in the midst of a battle for a seat on the board of the Walt Disney Co.
DIS,
during a Thursday interview with the CNBC morning program “Squawk on the Street.”
Peltz’s investment firm, Trian Group, says it holds shares in Disney valued at approximately $900 million and wants Peltz on the storied company’s board, arguing that Disney is struggling with issues that are of its own making.
“We believe that the company’s current problems are primarily self-inflicted and need to be addressed immediately,” read a Trian proxy statement explaining its aim to put Peltz on Disney’s board.
The proxy statement claims that Disney can be improved in several arenas, including capital allocation, corporate governance, and strategy and operations.
Peltz argued that Disney’s acquisition of select 21st Century Fox assets for $52.4 billion in 2017 had hurt the company.
On Wednesday, Trian launched a website about its goals for Disney, including the Peltz board seat, calling it Restore the Magic. Disney has publicly opposed Peltz’s director nomination.
See: Disney CEO Bob Iger wants employees to return to the office four days a week
The 80-year-old Peltz said he should be put on Disney’s board because of his prior experience turning around companies by helping them improve performance and increase long-term shareholder value. Peltz has previously waged successful proxy battles at top-tier companies including DuPont
DD,
and Procter & Gamble
PG,
Trian said in a regulatory filing that Peltz is seeking a one-year term on the board.
Disney, according to Trian, has “lost its way,” which has led to “a rapid deterioration in its financial performance.”
Trian said Peltz is not looking to break up the company or replace the recently returned CEO, Bob Iger, who turns 72 next month.
Further context: Disney faces activist battle. Here’s what Nelson Peltz wants.
Disney’s board of directors announced Wednesday that it has elected Mark Parker as chairman. Parker is a seven-year member of Disney’s board and serves as executive chairman of Nike
NKE,
Parker is succeeding Susan Arnold, who reached a 15-year board term limit.
Shares of the Disney moved 3.6% higher Thursday. Disney shares are down 36% over the past 12 months, compared with a 14.5% drop for the S&P 500
SPX,
over the same period.
