The move follows last week's turbulent AGM where disgruntled shareholders demonstrated their disquiet.
As many as one in four Granada shareholders voted against senior management's pay packages and Allen's two-year rolling contract, which is a source of much tension.
One in 10 shareholders voted against Allen's re-election as chairman of the company, a move that was easily defeated. Shareholders are concerned that the controversial packages could be carried over to a merged ITV. However, executives at merger partner Carlton Communications do not have such generous multimillion-pound golden handshake contracts.
The £2m Allen would pick up if he left is more than twice his annual salary of £963,000.
According to the Sunday Times, financial institiutions Schroders and Morley, which own almost 10% of Granada between them, are using their investment weight to see that the deal is axed.
One source quoted by the paper said it was an issue that must be addressed as part of the merger.
The Sunday Times said Allen's contract was of particular concern as he can apparently trigger the payout himself -- an almost unheard-of arrangement.
The controversial deal has focused shareholder ire on the board committee that approved the deal. It was given the green light by Granada's remuneration committee, which is chaired by Nigel Rich and includes Sir George Russell.
Granada's merger with Carlton is currently being examined by the Competition Commission, which is expected to complete its inquiry by June 25.
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