ITV Investors Could Remove Allen As Chief Executive
Charles Allen’s position as ITV chief executive has once again been called into doubt following reports that at least one major shareholder at the broadcaster is calling for him to be removed.
The news comes despite a series of positive meetings with ITV’s ten biggest institutional investors in the past week. A source close to one of the largest shareholders said: “He will go in July – of that I am certain.”
It is understood that shareholders have granted Allen a stay of execution, while the finer details of the merger of Carlton and Granada are finalised. The former Granada boss was largely blamed for the collapse of ITV Digital, which cost the broadcaster hundreds of millions of pounds.
Allen was also given the cold-shoulder last October when a coalition of influential investors, led by Anthony Bolton of Fidelity, forced Carlton chief Michael Green to step down as chairman designate of the newly merged ITV (see Green Looks Set To Go As Granada Withholds Support).
According to a report in the Daily Telegraph, Allen’s fate was effectively sealed at the same time. One senior source told the paper: “They wanted to get rid of Green and Allen at the same meeting.”
The investors are understood to have told ITV’s new chairman, Sir Peter Birt, of their wishes when he was appointed in late February. However, Birt insisted he had no intention of attempting to oust his second in command (see New ITV Boss Claims Allen Is Safe As Chief Executive).
City media analysts are surprised that investors are still gunning for Allen. One said: “There is no point going for the jugular with Charles Allen unless they have a serious figure to slip straight in. I would not see it as a sensible thing for him to go at this point.”
ITV is understood to have denied that shareholders are looking to oust Allen. A spokesman for the broadcaster said that feedback had been positive from the meetings with investors held last week. He told the Telegraph: “They have made it clear that they do not want to interfere with the day to day working of ITV.
Last month ITV announced that it is currently on target to save £100 million from the merger of Carlton and Granada, which was completed in February. Allen said: “ITV has come an enormously long way in the last 15 months and the pace of change has been incredible. We have put ITV in a stronger position and have created a united and more efficient company” (see ITV On Target To Save £100 Million From Merger).
ITV: 020 7843 8000 www.itv.com
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