DAVID Montgomery, former chief executive of the Mirror Group, is facing his second investor revolt in two years as the three biggest shareholders in Mecom, the newspaper group he founded, are calling for him to go.
Aviva, Invesco and Legal & General – which together own more than 50 per cent of Mecom’s shares – are understood to be behind the investor revolt. The trio are thought to have proposed an alternative candidate to run the company but have been rejected by non-executive directors, led by Alasdair Locke, the chairman, who say they fully support Montgomery.
Patrick Thillieux, a veteran European media executive, is believed to be the person put forward for the top job.
Montgomery faced an internal revolte in May 2009 when, as executive chairman, a group of directors tried to oust him from the board. The arch cost-cutter successfully fought back and won the support of investors. Six directors later resigned.
Mecom’s shares have experienced a roller-coaster ride, falling 97 per cent in 2008 before recovering this year.
City A.M. Reporter