Eisner’s Participation in IPO Under Review

Walt Disney Co. said its board was reviewing Chief Executive Michael Eisner’s participation in a 1999 initial public offering following a shareholder complaint. Eisner purchased 30,000 shares of Goldman Sachs Group Inc. in the investment bank’s IPO, and Disney said its board, following routine corporate governance practices, had formed a committee of independent directors to review the matter.

The committee is expected to report back to the board in early 2003. Disney said that Eisner who has been a substantial private client of Goldman Sachs for 10 years, participated in the offering at the invitation of his personal banker, and he has not participated in any other IPO.

Disney is a corporate client of Goldman, which was co-lead manager with Salomon Smith Barney of a $300-million global bond offering by Disney on Monday.