Activist investor Nelson Peltz is planning a new board challenge at Walt Disney less than 10 months after the home of Mickey Mouse laid out plans that addressed his criticism.
Peltz is now expected to ask Disney for "multiple" board seats, including one for himself, a person familiar with the matter told The Wall Street Journal.
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Meanwhile, the New York-based hedge fund has grown its ownership of Disney "five-fold" since the end of the second quarter when a regulatory filing showed it owning 6.4 million Disney shares, according to Reuters.
Should Disney stop his attempt to join the board again, Reuters said Peltz's Trian Fund Management could nominate director candidates between Dec. 5 and Jan. 4.
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Peltz said in a January press release that the entertainment conglomerate had lost its way in recent years, "resulting in a rapid deterioration in its financial performance from a consistent dividend-paying, high free cash flow generative business into a highly leveraged enterprise with reduced earnings power and weak free cash flow conversion."
In response to Peltz's Jan. 12 filing with the Securities and Exchange Commission, Disney said the activist investor "does not understand Disney’s businesses and lacks the skills and experience to assist the board in delivering shareholder value in a rapidly shifting media ecosystem."
In the filing, Disney also alleged Trian's analysis of the company's financial transactions was fundamentally flawed, while also refuting a series of reported claims from Peltz on his intentions to remove Bob Iger as CEO and Disney’s lack of strategy, operating initiatives and new ideas.
Disney and Trian did not respond FOX Business' request for comment.
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Reuters contributed to this report.
