(Reuters) – Walt told Blackwells Capital on Monday Disney (NYSE:) failed to disclose to shareholders that ValueAct Capital Management had invested more than $350 million of the US entertainment giant’s pension fund assets, creating a conflict of interest.
“ValueAct’s management of the Disney pension funds is not disclosed anywhere in any of the communications mentioned,” Blackwells chief investment officer Jason Aintabi wrote in a public letter to Disney shareholders.
“In the meantime, all Disney shareholders were led to believe that ValueAct independently provided independent and unconditional support to the Board of Directors.”
Blackwells urged shareholders to ignore the Walt Disney board’s support for ValueAct in the upcoming board elections.
Disney is relying on ValueAct’s support as it battles two other activist investors – Blackwells and Trian Fund Management – as each firm lobbies for seats on Disney’s board.
Neither Disney nor ValueAct immediately responded to requests for comment.
ValueAct, which acquired a stake in Disney last year and entered into an information-sharing agreement in January to help advise Disney on strategic issues, last week publicly backed Disney’s board of directors at a Council of Institutional Investors conference.
Like many hedge funds, ValueAct and Trian also earn fees by investing capital on behalf of large corporations.