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+---Topic: Roy disney sells more than 40% of his disney stock started by RichKoster

Posted by: RichKoster on Aug. 21, 2003 2:03 am/pm

Roy Disney selling 40 pct of Disney stake

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LOS ANGELES, Aug 20 - Roy Disney, the nephew of Walt Disney and vice chairman of Walt Disney Co. on Wednesday said he struck a deal to sell more than 40 percent of his stake in the company in which he was the largest individual shareholder.

Disney, 73, entered into a forward contract for the sale of 7.5 million Disney shares for about $163 million, but will keep voting control of the stock for five years, a spokesman said.

The deal will leave Roy Disney with about 10 million shares of the theme park, movie and entertainment conglomerate his uncle founded, leaving him less stock than Chief Executive and Chairman Michael Eisner, who had 14 million shares in January.

The deal, coordinated with the company and made as the stock is flirting with a 14-month high, limited Roy Disney's downside and gave him the chance to share in any gains in company shares over the next five years, a spokesman said.

Disney shares are up 35 percent this year at $21.98, and Roy Disney received $21.75 a share in the forward deal with Credit Suisse First Boston, said Roy Disney's spokesman Clifford Miller.

"That's his floor now. His downside protection is at $21.75," said Miller.

Roy Disney helped bring Eisner to the company nearly two decades ago but last year clashed with him over corporate governance. Miller said Disney planned to maintain his active role in the company.

Roy Disney entered into a variable prepaid forward contract, essentially a forward sale of a portion of shares held by a trust he controls, in part to diversify his investments, he said in a statement.

Disney's Shamrock Holdings Inc. is setting up a $120 million fund for investment in Israel, the country's industry, trade and labor ministry said on Tuesday.

Walt Disney Co. said in a statement on Wednesday that the variable prepaid forward was an increasingly popular transaction in corporate America.

Disney stock closed at $21.98, down 25 cents on the New York Stock Exchange on Wednesday.

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Posted by: Goofyteer on Aug. 21, 2003 7:17 am/pm

What does it mean that they "clashed over corporate governance"? Can anyone please explain what happened?
Posted by: RichKoster on Aug. 21, 2003 11:01 am/pm

That means they both wanted to do things their way.

Posted by: Goofyteer on Aug. 21, 2003 11:20 am/pm

I knew it! I just knew that would happen sooner or later! It was only a matter of time.

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