Allen's future at ITV in doubt after share price fall

by Staff, Brand Republic 24-Jul-06, 08:30

LONDON - Charles Allen, the ITV chief executive, could be ready to leave the broadcaster before the summer is out as its share price languishes dangerously low.

According to a report in the Sunday Times, Allen could leave ITV as early as August 9 after its share price fell to just 96.25p last week down from almost 130p in March.

His departure, which is far from certain, could be announced at ITV's interim results. They are expected to bring the troubled broadcaster more bad news.

Last month, it was reported that ITV was estimated to be down £125m in advertising revenue for 2006, compared with the previous year, even taking into account the boost in revenues brought by the World Cup.

With its share price languishing below 100p, the pressure has mounted on Allen, who saw off a takeover bid for the broadcaster earlier this year and could yet face another.

In March, former BBC director general Greg Dyke, backed by investment bank Goldman Sachs, Apax and Blackstone, failed in a £1.3bn bid for ITV.

Last month, Lord Hollick, the former chief executive of United Business Media, was reported to have renewed his interest in bidding for ITV through private equity company KKR.

The renewed approach is believed to involve fellow private investment firm Permira and could happen within a matter of months. With ITV's share price below the 100p mark, this is seen as being ever more likely.

The network's programming has been under fire and its sure-fire summer reality TV show 'Love Island' has flopped badly and is being beaten by Channel 4's 'Big Brother' in the ratings.

The Sunday Times reported that ITV chairman Sir Peter Burt has been approached by institutional shareholders pushing for change.

As with previous tales of Allen's departure, those institutional investors are believed to include Anthony Bolton, the Fidelity fund manager nicknamed "the quiet assassin".

Bolton was behind the ousting of ITV chairman designate Michael Green. The former Carlton boss, however, walked away with a £15m payoff.

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