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Reuters
Eisner Foes Race for Disney Votes
Tuesday March 2, 8:19 pm ET
By Peter Henderson
PHILADELPHIA (Reuters) - Walt Disney Co. (NYSE
IS - News) dissidents reached out to Wall Street's largest firms and tiny family investors alike on Tuesday, trying to rally last-minute votes the day before an annual meeting widely seen as a referendum on Chief Executive and Chairman Michael Eisner.
As the showdown at Wednesday's shareholder meeting in Philadelphia drew near, Disney's Chief Operating Officer and President Bob Iger said the company would finally be able to prove its case.
At a news conference set among human-sized statues of Mickey Mouse, Iger told reporters, "Tomorrow gives us an opportunity to prove to everyone that the statements about us and the campaign that has been waged is indeed distorted and one that is rife with misinformation."
Many small investors who poured into the city were as concerned with the fate of an American icon as with their pocketbooks, and some were unsure whether to support Eisner by voting to reelect him to the board.
"I think he's going to be out," said Hana Nobel, 13, who owns about 600 shares. She and her father attended a meeting held by Roy Disney, the dissident former director leading the fight against Eisner.
Nobel said she was leaning against Eisner. But she also wanted the company to stay independent and was concerned that firing him might open the way to Comcast Corp. (NasdaqNM:CMCSA - News) the cable operator angling to buy Disney.
Roy Disney's camp says ousting Eisner will raise the company stock price, making it too expensive for Comcast.
Comcast itself holds about 2 million Disney shares, about 0.1 percent of Disney, and will vote them against Eisner, a source familiar with the matter said.
"My gut feeling is that if the 'vote no' block is 30 to 35 percent, that could be impetus for the board to suggest that Mr. Eisner step down as chairman and remain as CEO," said David Miller, a financial analyst for Sanders Morris Harris.
PREPARING FOR LONG FIGHT
Stanley Gold, another former director who resigned in protest with Roy Disney, told investors the fight would probably drag on after the annual meeting.
"This board is going to try to do something tricky. It is going to try to spin. It isn't quite ready to face up yet to reality," he said, telling supporters to "continue after tomorrow" and target the board.
The company board nominees are guaranteed to win on Wednesday, since there are no alternatives on the ballot, but Roy Disney and Gold have called for a protest against Eisner by withholding votes for him and three other directors.
Many state pension funds have said they will oppose Eisner, and the dissident team said it called on all 50 top institutional shareholders, including visits early on Tuesday.
The dissidents say shareholders would send a strong message by withholding 20 percent of votes for management, and many analysts agree. The company has acknowledged that 30 percent or more may withhold votes and that the issue could be seen as whether the chairman and CEO roles should be separated.
With double-digit profit growth seen through 2007, Disney is going strong, the company has said.
But investor Bob Jenkins, with over 1,000 shares of Disney stock, looked at stock performance over a longer horizon than the last year or so. He has already voted against Eisner.
"He and his staff are overpaid, and the stock has sunk a lot," he said.
Eisner Foes Race for Disney Votes
Tuesday March 2, 8:19 pm ET
By Peter Henderson
PHILADELPHIA (Reuters) - Walt Disney Co. (NYSE
IS - News) dissidents reached out to Wall Street's largest firms and tiny family investors alike on Tuesday, trying to rally last-minute votes the day before an annual meeting widely seen as a referendum on Chief Executive and Chairman Michael Eisner.As the showdown at Wednesday's shareholder meeting in Philadelphia drew near, Disney's Chief Operating Officer and President Bob Iger said the company would finally be able to prove its case.
At a news conference set among human-sized statues of Mickey Mouse, Iger told reporters, "Tomorrow gives us an opportunity to prove to everyone that the statements about us and the campaign that has been waged is indeed distorted and one that is rife with misinformation."
Many small investors who poured into the city were as concerned with the fate of an American icon as with their pocketbooks, and some were unsure whether to support Eisner by voting to reelect him to the board.
"I think he's going to be out," said Hana Nobel, 13, who owns about 600 shares. She and her father attended a meeting held by Roy Disney, the dissident former director leading the fight against Eisner.
Nobel said she was leaning against Eisner. But she also wanted the company to stay independent and was concerned that firing him might open the way to Comcast Corp. (NasdaqNM:CMCSA - News) the cable operator angling to buy Disney.
Roy Disney's camp says ousting Eisner will raise the company stock price, making it too expensive for Comcast.
Comcast itself holds about 2 million Disney shares, about 0.1 percent of Disney, and will vote them against Eisner, a source familiar with the matter said.
"My gut feeling is that if the 'vote no' block is 30 to 35 percent, that could be impetus for the board to suggest that Mr. Eisner step down as chairman and remain as CEO," said David Miller, a financial analyst for Sanders Morris Harris.
PREPARING FOR LONG FIGHT
Stanley Gold, another former director who resigned in protest with Roy Disney, told investors the fight would probably drag on after the annual meeting.
"This board is going to try to do something tricky. It is going to try to spin. It isn't quite ready to face up yet to reality," he said, telling supporters to "continue after tomorrow" and target the board.
The company board nominees are guaranteed to win on Wednesday, since there are no alternatives on the ballot, but Roy Disney and Gold have called for a protest against Eisner by withholding votes for him and three other directors.
Many state pension funds have said they will oppose Eisner, and the dissident team said it called on all 50 top institutional shareholders, including visits early on Tuesday.
The dissidents say shareholders would send a strong message by withholding 20 percent of votes for management, and many analysts agree. The company has acknowledged that 30 percent or more may withhold votes and that the issue could be seen as whether the chairman and CEO roles should be separated.
With double-digit profit growth seen through 2007, Disney is going strong, the company has said.
But investor Bob Jenkins, with over 1,000 shares of Disney stock, looked at stock performance over a longer horizon than the last year or so. He has already voted against Eisner.
"He and his staff are overpaid, and the stock has sunk a lot," he said.
