Disney Reaches Out to Big Holders

In May, Disney's board met with representatives of seven public pension funds that were Disney shareholders. "The Disney board takes seriously the responsibility to listen to all shareholders," Mitchell said in a statement issued after that meeting.

A Disney spokesman declined to comment on the planned cocktail party last week.

Wednesday's cocktail reception -- believed to be following a two-day board meeting -- comes as Disney is generating increasing amounts of goodwill among investors. Shares in the company, which were trading as low as $20.88 in August, were trading at $27.34 last Wednesday -- up more than 30%.

Disney's financial performance appears to be on the upswing. Earlier this month the company reported fiscal fourth-quarter results that generally pleased Wall Street. Credit Suisse First Boston's William Drewry, for one, called the results "copacetic" and noted that the theme-park business, excluding the impact of recent hurricanes, was "surprisingly strong." (Drewry has an outperform rating on Disney and a $40 price target; his firm has done recent banking for Disney.)

Disney's underperforming ABC prime-time schedule has also gotten a recent lift from a slate of popular new shows, chiefly Desperate Housewives.

But Disney has also suffered some embarrassment from the Delaware trial, which has dredged up the nearly decade-old soap opera surrounding Ovitz's short-lived career as Disney president. Last week, for example, Mitchell testified that he had been offered the presidency before Ovitz, according to press reports, contradicting earlier testimony from Eisner that he hadn't offered Mitchell the job.