MP backs a 'No' vote at Doulton

SHAREHOLDERS in troubled ceramics group

Labour MP Paul Farrelly has written to leading investors, including Sir Anthony O'Reilly's Waterford Wedgwood group, claiming that the board, led by Grossart, has 'managed the company into the ground'. It follows last week's revelation that chief executive Wayne Nutbeen had gone on holiday to the exotic island of Zanzibar days after announcing the closure of Doulton's last UK factory in Stoke-on-Trent, Staffordshire, with the loss of 525 jobs.

Farrelly, a local MP, told Financial Mail: 'We want to ask why the chairman allowed his chief executive to swan off to Zanzibar. Grossart gets £120,000 a year for working one day a week. We'd like to know when he last visited Stoke. Doulton has lost £127m since he became chairman.'

Farrelly will also question Nutbeen's pay and perks, which included £40,000 to relocate his family back to Australia after he split up with his wife, and £20,000 in airfares for them.

'What sort of a practice is that for a cash-strapped company?' said Farrelly.

Grossart, a stalwart of the Edinburgh financial community, may owe his survival to O'Reilly, who also owns the Independent newspaper.

O'Reilly and his brother-in-law, Peter Goulandris, have built a private stake of at least 3.3% stake in Doulton, while Waterford Wedgwood owns another 21%, prompting bid speculation.

Doulton declined to comment.