In a report in the Sunday Times, one of the broadcaster's biggest shareholders said: "A lot of people would like someone to rescue this company -- a Six Continents-type thing. There will be no loyalty to the existing management. But even if there is no change of ownership there ought to be a change of management."
Investors have long been critical of the management of both ITV companies and there was some dismay, following the merger announcement in October, that Carlton chairman Michael Green and Allen were to take the two top jobs in the merged company.
Shareholders will use Granada's AGM this week to raise their concerns. They are also reported to be unhappy with the fact that Allen is on a two year rolling contract in breach of what is seen as good corporate governance.
Shareholders have called for one of the two top jobs to go to an outside executive or for a heavyweight outside director to be appointed to the board. Granada has responded to this criticism with two board appointments. First by naming the former 3i chairman, Sir George Russell, as non-executive deputy chairman and then, in November, it appointed James Crosby, chief executive of HBOS, one of the UK's largest banks, as another board member.
Granada has also seen its second most senior director depart, with chief executive Steve Morrison going in August.
Shareholders have been angered that, despite Allen and Green overseeing the collapse of ITV Digital, they still got the top jobs. The decline in ITV's fortunes has won the two chiefs few fans in the City, who want to see changes in the way ITV is run.
Another big Granada shareholder, Morley Fund Management, has added its voice to the growing concerns over the management of the company. Mike Bishop, its head of European Equities, told The Sunday Times: "This company has not got to grips with its fundamental problem in terms of audience -- putting repeats out on a Friday evening is unhelpful. We need the merger with Carlton. The fact that it has been referred means management is going to be under the spotlight. It still has to get to grips with audience share and the costs in the business."
On Friday, Granada saw its shares jump 8% on speculation that an outsider bidder could break up the ITV merger. Granada shares were up 8.82% to 55.5p on rumours that an unnamed outside bidder could be preparing to make a bid for the broadcaster.
However, it is thought unlikely that a bidder will make itself known before the merger gets the go ahead, following the merger's referral to the Competition Commission last Tuesday.
If you have an opinion on this or any other issue raised on Brand Republic, join the debate in the .
.jpg)
.jpg)