Green-mail

20 October 2003 By Fiona Maharg-Bravo

There is talk of a compromise: namely bringing in a nonexecutive deputy chairman to keep an eye on things. But it is hard to see how such a proposal would satisfy the dissident shareholders.

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Carlton's directors refused to remove Michael Green at a board meeting on Sunday evening, defying the wishes of a group of powerful investors who have been calling for his immediate dismissal. However, they said they would welcome further discussions with the investors.

The shareholders led by Fidelity and including UBS, Standard Life, Isis, Morley, Legal & General , Schroders and Deutche Bank set a deadline of noon on Tuesday October 21 for Green to go. Otherwise they have threatened to use "all other measures open to us to ensure compliance". Collectively, they speak for around 36% of Carlton's equity.

Speaking before the Carlton emergency board meeting on Sunday evening, John McGrath, a Carlton nonexecutive and former chairman of Boots, suggested a possible compromise. He told the Financial Times, "If they ask us to appoint an independent deputy chairman who regularly reviews the performance of the chief executive and chairman then I'm sure the ITV board would agree to that. There are lots of ways of doing that rather than using a sledgehammer."

Granada's board is due to discuss the shareholders' request at a meeting on Monday evening.

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