Pinewood shareholder calls for chairman to quit

FORMER ITV chairman Michael Grade was today under pressure to quit the board of the company that owns the Pinewood and Shepperton film studios.

Crystal Amber, an activist investment fund with 18 per cent of the shares in Pinewood Shepperton, targeted Mr Grade's "poor stewardship" as chairman of the company and said the board needed fresh leadership.

The call was made ahead of the company's annual meeting in London today, when the majority of shareholders are expected to back Mr Grade.

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The former ITV boss said: "Our latest discussions with our other major shareholders, representing a clear majority, give us confidence that they support the board, its stewardship and strategy."

Mr Grade has been on the board since his involvement in a management buy-out from Rank in 2000. Profits have fallen by half since flotation in 2004 but Crystal Amber invested in Pinewood 18 months ago because it said there was underlying value in the business not appreciated by the market.

Crystal approached the board with proposals of its own to enhance perceptions of the value in the business, which is best known for the James Bond films.

Crystal's investment adviser Richard Bernstein said: "Although these proposals were initially received well by management, we have seen no action and subsequent meetings with Mr Grade have been unproductive.

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"We have experienced his poor stewardship of shareholder interests at first hand and have regrettably come to the conclusion that he has neither the desire nor the wherewithal to deliver.

"We do not believe it is in the interests of shareholders that he continue to lead the board."

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