British broadcaster Carlton has moved to quell a shareholder revolt by rejecting an ultimatum by institutional investors to oust Mr Michael Green as chairman of ITV, the company formed by its merger with Granada.
A group of investors led by Fidelity wants Mr Green out in favour of an independent, non-executive chairman to work alongside Granada's Mr Charles Allen, ITV's chief executive designate.
The investors control some 35 per cent of the combined company, Britain's largest commercial broadcaster. They said they would call an emergency shareholder meeting unless Carlton agrees to oust its founder.
"I think that Michael Green is going to have to stand down at some stage," Mr David Cumming of Standard Lif said in a radio interview this morning. "If they do resist, an EGM could be called to force the proposal through."
In another test of shareholder muscle, investors in Barclays are unhappy with the bank's decision to appoint outgoing Chief Executive Matt Barrett as chairman. They say the move runs counter to government efforts to tighten corporate governance.
The merged ITV is already seen as a takeover target for a foreign company such as media giant Viacom. Management upheaval could make it more vulnerable.