No AFL-CIO Union Label for Comcast-Disney2/25/2004 8:09 AM Eastern
The AFL-CIO said Wednesday that Comcast Corp.’s corporate-governance structure will be a "substantial barrier" to a successful merger with The Walt Disney Co., Dow Jones reported.
The union cited the MSO’s restrictive charter, dual-class voting arrangement, chief executive-dominated nominating committee and lack of independent directors as reasons why Disney shareholders would not support the merger, Dow Jones said.
The AFL-CIO called for corporate-governance reforms to bring Comcast to "contemporary minimum standards of good corporate governance."
The union added that it wants Comcast CEO Brian Roberts to resign from the board's governance and directors-nominating committee, Dow Jones said.
"Comcast has always been driven by a culture of ethics and duty to our shareholders, who have seen Comcast shares outperform the S&P 500 by a margin of more than 2-1 since Comcast went public in 1972," the MSO responded in a prepared statement.
"Further, Comcast's current governance structure was approved by more than 99% of AT&T [Corp.] shareholders," the company added, referring to Comcast’s 2002 acquisition of AT&T Broadband.