Monday, July 11, 2005

Peace Work Pays Off at Disney

A surprise peace deal soothes the Magic Kingdom, ending a pair of potentially embarrassing suits and heralding Roy Disney's return

Chalk another one up for Bob Iger. The incoming Walt Disney (DIS ) CEO, who has been in overdrive cleaning up problems inherited from departing CEO Michael Eisner, pulled a giant thorn from his outfit's hide July 8 by striking a surprise agreement with dissident shareholders Roy Disney and Stanley Gold to "put aside their differences." As a result, the duo will withdraw a pair of pending lawsuits and agree not to run a rival slate of directors for the next five years.

Why the sudden change in heart? Neither Disney nor Shamrock Holdings, Roy Disney's holding company, are commenting beyond a one-paragraph statement. Clearly, the Mouse House wanted to avoid airing internal discussions in open court -- a development that would have been all but certain if the pair had continued with their legal efforts, one of which was set for trial Aug. 8 in Delaware.

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