Is Steinberg the Big Bad Wolf?

New York Financier Saul Steinberg, 44, has compiled a fear some record as a corporate raider. So when he acquired 12.2% of Walt Disney Productions, the movie and amusement-park company appeared to be in danger. But Wall Streeters are now saying that Steinberg's battle plan looks like so much huffing and puffing. Though he has said he may buy nearly 50% of Disney stock, Steinberg's search for other investors to go in with him has so far been fruitless. Also, his fight to unseat Disney's board of directors looks doomed.

Last week Steinberg hit his biggest obstacle to date. A U.S. judge refused to prevent Disney from buying Arvida Corp., a land-development firm, for up to 3.8 million Disney shares.

Steinberg had sued to block the deal, saying that Disney paid too much for Arvida in an at tempt to stop a takeover. If the sale occurs, about 25% of Disney stock will be in the hands of shareholders friendly to management, hurting Steinberg's plan to gain control.