March 11 (Reuters) - Blackwells Capital said on Monday

Walt Disney failed to tell shareholders that ValueAct

Capital Management had invested more than $350 million of the

U.S. entertainment giant's pension fund assets, creating a

conflict of interest.

"ValueAct's management of Disney's pension funds is not

disclosed anywhere in any of the referenced communications,"

Blackwells Chief Investment Officer Jason Aintabi wrote in a

public letter to Disney shareholders.

"Meanwhile, Disney's entire shareholder franchise population

has been led to believe that ValueAct provided its independent

and unqualified support of the Board independently."

Blackwells urged shareholders to disregard ValueAct's

endorsement of Walt Disney's ( DIS ) board in the upcoming

elections of the board of directors.

Disney is relying on ValueAct's endorsement at a time when

it is fighting to fend off two other activist-investors -

Blackwells and Trian Fund Management - as each firm lobbies for

seats on the Disney board.

Neither Disney nor ValueAct immediately responded to

requests for comment.

ValueAct, which built a stake in Disney last year and

reached an information sharing agreement in January to help

advise Disney on strategic matters, last week publicly supported

the Disney board at the Council of Institutional Investors

conference.

Like many hedge funds, ValueAct and Trian also earn fees by

investing capital on behalf of big corporations.

Disney on Monday said it had fired Trian in 2021 for poor

performance. But the company did not say in its proxy materials

which other firms have previously or are still managing money

for its pension fund.

Blackwells cited Disney's form 5500, which is filed with the

Department of Labor, as its source for information on the

management firms Disney employs.