Euro Disney S.C.A. investor hedge fund Charity & Merger Arbitrage Fund managed by Charity Investment Asset Management (CIAM) has written to individual members of the Disneyland Paris Supervisory Board accusing the company of working with The Walt Disney Company to force out minority shareholders.
The Walt Disney Company last month acquired a further 9% stake in Euro Disney from Prince Alwaleed, the Saudi billionaire, at €2.00 a share, increasing its holding in the resort to 85.7%, and said it was offering the same price to shareholders of the remaining shares.
Founded in 2009 by Catherine Berjal and Anne-Sophie d’Andlau, CIAM has long been critical of the scale of the royalty fees payable to The Walt Disney Company and has said that the €565 million depreciation in Euro Disney’s last accounts “would mean that the book value of the park is zero”. The Euro Disney Group posted a record loss of €858 million last year.
CIAM who are reported hold 1.4% of Euro Disney’s stock accuses Disney management of exploiting “a clear conflict of interest”, arguing that the write-down appears solely to facilitate the takeover bid.
Euro Disney and The Walt Disney Company have consistently dismissed the allegations as “utterly without merit”.