Carlton bows to shareholder demands

Tuesday, 21 October 2003 12:00 AM

Carlton boss Michael Green and his board of directors have bowed under pressure from shareholders and agreed that he should not be chairman of the newly-merged ITV network.

The move comes after merger partner Granada had earlier backed calls from institutional investors to appoint a chairman from outside the two groups.

Carlton issued a statement announcing: "Michael Green as chairman together with the board of Carlton Communications Plc remain committed to the completion of the merger and intend to play a full and active role in this process."

The announcement represents a major victory for Fidelity Investments, the largest shareholder of both Granada and Carlton.

Fidelity had set a deadline of midday on Tuesday for the removal of Mr Green as chairman of ITV plc.
Mr Green has served as chairman at Carlton for 20 years.

At the weekend Carlton's directors agreed to stand by Mr Green but changed position after the board of Granada backed Fidelity's request.

The shareholder revolt is believed to have been largely due to Mr Green's intention to be a hands-on executive chairman and his role in the management of the disastrous ITV digital venture.

Granada's statement read: "It is now clear to the board of Granada that there is a substantial body of opinion, amongst shareholders of both companies, in favour of the appointment of an independent, non executive chairman of ITV plc."

Mr Green's counterpart at Granada, Charles Allen, will become chief executive of the merged group.

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