🚀 AI-picked stocks soar in May. PRFT is +55%—in just 16 days! Don’t miss June’s top picks.Unlock full list

T. Rowe Price backs Disney directors in boardroom challenge with hedge funds

Published 04/01/2024, 05:32 PM
Updated 04/01/2024, 08:05 PM
© Reuters. FILE PHOTO: The logo of T. Rowe Price Group is pictured at its office in Tokyo, Japan, January 13, 2017.    REUTERS/Toru Hanai/File Photo

By Svea Herbst-Bayliss

NEW YORK (Reuters) -Mutual fund firm T. Rowe Price, which owns roughly 11.7 million shares in Walt Disney (NYSE:DIS), said it has voted for the entertainment giant's directors, dealing a blow to activist hedge funds Trian Fund Management and Blackwells Capital as they seek board seats.

T.Rowe Price told Reuters on Monday it voted for Maria Elena Lagomasino and Michael Froman, "the two incumbent directors whose board positions are being challenged."

"T. Rowe Price is comfortable that management has a viable plan to address the important matters facing the company," a spokesperson for the mutual fund firm said.

The mutual fund firm, whose investments and statements on investing are closely watched by rivals, owns 0.64% of Disney, making it a top 20 shareholder.

Blackrock (NYSE:BLK) is also among major investors backing Disney in the proxy fight, the Wall Street Journal reported on Monday, citing people familiar with the matter.

With more than half of votes cast, Disney has pulled ahead in its fight against Trian, the report added.

© Reuters. FILE PHOTO: The logo of T. Rowe Price Group is pictured at its office in Tokyo, Japan, January 13, 2017.    REUTERS/Toru Hanai/File Photo

Blackrock and Disney did not immediately respond to a Reuters request for comment on the WSJ report.

Shareholders have until Wednesday to cast their votes in one of the year's most closely watched corporate battles, pitting an iconic American company against two hedge funds that want it to make changes ranging from splitting off the real estate business to cleaning up succession planning.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.