Investing.com -- Activist investor Nelson Peltz and his Trian Fund Management have formally launched a bid to gain two seats on the board of directors at Walt Disney (NYSE:DIS), according to a preliminary proxy statement on Thursday.
An owner of $3 billion in Disney common stock, Trian has nominated Peltz and former Disney finance chief Jay Rasulo to the board of the entertainment behemoth. In the statement, Trian defended the move, accusing the current board of failing to "adequately perform its primary responsibilities as stewards of shareholder capital."
Trian's announcement marks the official salvo in a second proxy fight in as many years between Peltz and Disney. Trian had previously revealed its plans in December.
Earlier this week, Disney rejected Trian's nominations in its own preliminary filing, arguing that the board has made "considerable" progress in executing a sweeping overhaul of the company.
Disney also hit out at Peltz, claiming that he had not actually "presented a single strategic idea." Trian had previously criticized Disney chief executive Bob Iger, describing what it perceives as the board's dedication to Iger as the "root" of a host of recent issues at the group.
Disney has faced fierce competition at its key streaming service, a downturn at its traditional television division, and weak box-office performances at its high-profile movie studios. The firm's share price has tumbled by more than 7% in the past one-year period, fueling the discontentment seen in activist investors like Trian and Blackwells Capital.
Outlining its goals for the Disney, Trian said it will push the company to "finally complete" the process of finding a replacement for Iger, whose $31.6 million pay package has been a source of activist complaints. Trian also vowed to target and achieve "Netflix-like" margins of 15%-20% at Disney's all-important streaming business by the 2027 financial year.
On Thursday, Peltz told business news channel CNBC that he believed that Disney's board oversight was "awful," adding that he cannot continue to wait to give the company more time to improve. However, Peltz said he was was willing to work with Iger to resolve his problems with Disney.