Final countdown

21 October 2003 By Fiona Maharg-Bravo

Shareholders successfully divided and conquered the ITV board, making Green’s departure a fait accompli. The balance of power has clearly shifted to Granada. But this shouldn’t jeapordise the merger.

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Granada's directors have backed shareholder calls for the removal of Michael Green after an emergency board meeting on Monday evening. The company said it wished to remove the present uncertainty and that shareholders interests will be best served by the appointment of a new chairman from outside the enlarged ITV plc.

This follows the decision of Carlton's Board to back Green on Sunday evening. In an attempt to appease the shareholders, the Carlton board yesterday tabled three compromise solutions, all of which involved Green staying on as chairman with certain changes to the composition of the board.

But these proposals were dismissed by the shareholders led by Fidelity and including Standard Life, Isis, Morley, Legal & General, Schroders and Deutsche Bank. They reiterated their demands for Green to go yesterday saying their request specifically relates to the role of the ChairmanDesignate and at no stage have the shareholder group requested any other changes to the composition of the combined Board.

The shareholders have set a deadline of noon today for Green to go. Otherwise they have threatened to use all other measures open to us to ensure compliance. Collectively, they speak for in aggregate, some 33% of the equity of Granada and some 36% of the equity of Carlton.

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