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dissidents Roy Disney and Stanley Gold won't nominate an alternative director slate for the 2005 meeting, saying they believe the company's board is making progress in serving the interest of shareholders.

Disney and Gold, who last winter led a shareholder revolt against what they called the imperial rule of CEO Michael Eisner, lauded the board for committing to find an outside candidate to succeed Eisner with due speed.

The letter hardly looks to be the start of a feelgood period, though. Gold and Disney took exception with the company's failure to appoint certain independent directors, along with other corporate governance matters.

"As encouraged as we've been by the Board's response to the events at the last annual meeting, we were more than a little disheartened by Messrs. Eisner and Mitchell's rejection of all three independent Board candidates recommended by a group of six leading public pension funds after requesting their recommendations more than six months ago," the dissidents said in a letter to the Disney board. "After last year's shareholder revolt, we had hoped this year the Board would be more receptive to input from concerned stockholders."

On Friday, Disney slipped a quarter, to $27.37.