The board of SMG has threatened to resign after a dispute with one of its main shareholders as to who should run the company.
According to a report in the
Guardian, non-executive directors told Fidelity that they would quit unless the fund manager stop demanding that they fire chairman Dr Chris Masters.
Fidelity has apparently been backing Richard Findlay, former Scottish Holdings boss, in an attempt to take over from Masters.
Fidelity has a 15% stake in SMG, whilst ITV, the largest investor, has a 17% stake in the company.
Ten days ago, SMG, owner of Virgin Radio, saw its share price fall after issuing a profits warning (see SMG Issues Profit Warning And Sees Shares Fall), whilst in August UTV made a merger bid for the company but withdrew its proposal (see UTV Withdraws SMG Merger Proposal).
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