March 7 (Reuters) - Activist hedge fund ValueAct Capital

reiterated its backing for Walt Disney ( DIS ) on Thursday amid

a board challenge from billionaire Nelson Peltz's Trian Fund

Management.

"As legacy technologies transition to digital platforms, we

believe Disney ( DIS ) can lead the media industry forward," ValueAct

Co-CEO Mason Morfit said in a statement.

Disney ( DIS ) had won the backing of ValueAct and Blackwells

Capital in January in the middle of its ongoing proxy war with

Peltz, who has pushed the entertainment and media giant to cut

costs, create Netflix-like profit for its streaming business and

clean up its succession planning.

ValueAct, which wants Disney ( DIS ) to move beyond streaming wars,

highlighted the company's actions, such as the acquisition of

the remaining stake in Hulu and its integration with Disney+ as

being among key steps to create bigger bundles of content.

The activist hedge fund also reaffirmed its backing for

Disney's ( DIS ) board and CEO Bob Iger and said it has seen tangible

evidence of progress.