Opponents unite to oust ITV's Green

INVESTORS who want to block the appointment of Carlton's Michael Green as chairman of ITV have been bolstered by divisions between the company and its merger partner Granada.

Despite the show of unity between Green and Granada chairman Charles Allen when the £4.5 billion merger was cleared by the Government, shareholders have had differing signals from the companies over the two men's roles. Allen is set to become chief executive of ITV.

Carlton is thought to favour the proposed management line-up, but investors believe Granada wants Green to take more of a back seat.

Green is under pressure this weekend to step aside from his proposed role as chairman of the merged group after institutional investors, including Fidelity, Schroders and Deutsche Asset Management, told the two companies' boards that they wanted a new independent chairman.

Green may have to give up his plan to become the full-time chairman of ITV as the price for investors agreeing the deal with Granada. Green has always refused to describe his proposed role as chairman of ITV as executive or nonexecutive, describing it instead as full-time.

Institutional investors in the two companies have long been unhappy with the pair, holding them responsible for the loss of well over £1.2 billion of shareholders' money through their handling of failed pay-television service ITV Digital.

Investors fear that Green will interfere with Allen's running of the business even though Green's role as chairman is to deal with shareholders. And they do not believe that Green meets the City's definition of an independent chairman since he has been closely involved with ITV for years.

A senior City source said: 'It's quite clear that if Green is there five days a week, he won't be able to resist interfering. What else is he going to do? Allen's strength is folding two companies together. His is the skill-set required and he needs to be left alone to do it.'

Neither Carlton or Granada would comment.