NEW YORK, April 2 (Reuters) – Walt Disney's (DIS.N), opens new tab largest investor, Vanguard Group, on Tuesday voted to elect the entertainment giant's incumbent directors, allowing the company to pull further ahead in a bitter boardroom fight with two hedge funds, sources told Reuters.
The decision by Vanguard, which owned an 8.2% stake in the home of Mickey Mouse at the end of last year, comes just hours before the deadline for a shareholder vote that will guide the future of one of the world's largest entertainment companies. Vanguard was not immediately available for comment.
Earlier on Tuesday Norges Bank Investment Management, said it had voted to re-elect 11 of the entertainment company's 12 directors.
These key endorsements added to Disney's momentum before a Tuesday night deadline for shareholders to decide whether to back Chief Executive Bob Iger's slate of current directors or five alternative candidates proposed by hedge funds Trian Fund Management and Blackwells Capital.
The contest is the most closely watched boardroom clash in the United States this year, serving as a referendum on the future of the century-old Mouse House as it navigates the entertainment industry's shift to streaming.
NBIM, which manages the Norwegian Government Pension Fund and owned a 1.2% stake in Disney at the end of last year, said it had voted to re-elect nearly all company directors but withheld its vote for Mark Parker, chairman of Disney's board.
It did not vote for any candidates proposed by Trian or Blackwells.
Disney did not immediately respond to a request for comment on the vote tally.
While many of the outstanding votes have been cast, people familiar with the tallies said there were still some investors who had not voted but that there was still time before results are announced at the company's annual shareholder meeting on Wednesday, which will stream live at 1 p.m. EDT (1700 GMT).
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