Fund manager undermines Eisner

WALT DISNEY chief executive Michael Eisner spent six weeks seeking support from the largest fund manager adviser in the US to stave off an attempt to oust him from the board.

His failure may undermine him as he fights a $54.1 billion hostile takeover bid by Comcast.

Institutional Shareholder Services yesterday recommended that investors withhold votes from Mr Eisner, who is seeking re-election to the board at Disney’s March 3 annual meeting.

Mr Eisner and five Disney executives and directors visited the firm this year to gain support against a push by ex-directors Roy Disney and Stanley Gold to have him removed.

The decision by Institutional Shareholder Services and Comcast’s offer will force change Disney, said Vic Hawley, a fund manager at Reed Conner & Birdwell. “Disney as it exists today can’t go on,” he said.

Mr Eisner has been under fire from dissident shareholders led by Roy Disney and Gold, who say he mismanaged the company and alienated partners.

They also want him to set up a succession plan and separate the roles of chief executive and chairman.